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Optional capital structure by issuing debt

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Reference no: EM131200716

Assume tOY Corp. undertakes a plan to move toward its optional capital structure by issuing debt and using the proceeds to repurchase equity. The corresponding increase in the company's debt ratio will typically have no effect on its ____________?

Select one:

A. Business risk.

B. Total risk.

C. Financial risk.

D. Market risk.

E. The firm's beta.

Reference no: EM131200716

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