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a recapitalization that raises funds by selling common stock to investors and uses the funds to...

a recapitalization that raises funds by selling common stock to investors and uses the funds to retire debt:

a. increases the financial risk of the corporation
b. decreases the financial risk of the corporation
c. increases the risk of any preffered stock the firm has outstanding
d. will invrease the firm's cost of debt financing because the firm's debt ratings will be lowered therby increasing the default risk of corparations bonds
e. all answers are correct except a

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