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Basic Question 10 of 15

Which statement is TRUE?

A. Market values usually have a dramatic impact on the optimum level of borrowing if they change significantly.
B. The type of the capital invested in the company is of main significance to company management.
C. Rating agencies use book value instead of market value of debt and equity when calculating solvency measures.

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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

describe optimal and target capital structures

CFA® 2025 Level I Curriculum, Volume 2, Module 6.