Q. Which of the following statements is correct for an aggressive financing policyfor a firm relative to a former conservative policy? (Solved)
1. the firm will use long-term financing to finance all fixed and current assets.
2. the firm will see an increase in its expected profits.
3. the firm will see a decline in its risk profile.
4. the firm will need to issue additional common stock this period to finance the assets.
- b. the firm will see an increase in its expected profits.