Vidyalelo
Commerce · Q245

Business Finance

Graduate and Post Graduate · Commerce · question 245

Q245

Which of the following statements is correct for a conservative financing policy for a firm relative to a former aggressive policy?

A.
The firm uses long-term financing to finance all fixed and current assets
Answer
B.
The firm willsee an increase in its expected profits
C.
The firm willsee an increase in its risk profile
D.
The firm will increase its dividends per share (DPS) in this period

Answer: Option A

Solution

Answer: Option A
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