If debt financing is used in a for-profit corporation
Course:- Financial Management
Reference No.:- EM13880648

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If debt financing is used in a for-profit corporation, more of a firm's operating income is available for distribution to investors (owners and creditors). The additional available operating income arises as a result of

a. greater operating expenses

b. greater operating revenue

c. reduced operating expenses

d. lower dividends

e. tax savings

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