Question: Which of the following effects will decrease the amount of financial leverage in the firm? In each case, assume that all other activity in the

Which of the following effects will decrease the amount of financial leverage in the firm? In each case, assume that all other activity in the firm does not change.

Question 17 options:

A new equity issue

The use of inventory to increase cash

A shift of $100 from cash to inventory

A decrease in the firms retained earnings account.

IS THE ANSWER A OR B???

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