(Answered) Question is it sensible for a firm to have debt outstanding

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Question: Is it sensible for a firm to have debt outstanding and at the same time to pay dividends, or would the firm be better off using any available funds to reduce its indebtedness? Is it sensible for a firm to incur additional debt in order to finance dividend payments? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

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