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After the issuance of debt, an unlevered firm becomes Blank______.Multiple choice question.unstablemore vibrantleveredstratified

Question

After the issuance of debt, an unlevered firm becomes Blank______.Multiple choice question.unstablemore vibrantleveredstratified

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Solution

The correct answer is "levered". After the issuance of debt, an unlevered firm becomes levered. This is because the term "unlevered" refers to a company that has no debt, while "levered" refers to a company that has taken on debt.

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