Question: Question 2 ( 6 points ) Saved Other factors being equal, in which of the following situations are debt - equity conflicts likely to arise?
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Other factors being equal, in which of the following situations are debtequity conflicts likely to arise?
Financial leverage is low.
The company's debt is secured.
The company's debt is longterm.
The company has a highinterest coverageratio.
The company's debt has several covenants that bind its investment decisions.
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