Decrease in financial leverage

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Which of the following will lead to a decrease in financial leverage?

A. Purchased equipment to be used in the business for $6,000 cash.

B. Received cash totaling $6,000 from investors in exchange for capital stock.

C. Paid $6,000 cash to shareholders for dividends.

D. Borrowed $6,000 from a bank to be repaid in two years.

Reference no: EM13934918

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