Business, 23.04.2020 17:39 lilquongohard

Debt management ratios Companies have the opportunity to use varying amounts of different sources of financing to aoquire their assets including internal and external sources, and debt (borrowed) and equity funds Which of the following is considered a financially leveraged firm?

a. A company that uses only equity to finance its assets
b. A company that uses debt to finance some of its assets

Which of the following is true about thelveraging effect?

a. Under economic growth conditions, firms with relatively low leverage will have higher expected returns.
b. Under economic growth conditions, firms with relatively more leverage will have higher expected returns.

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Debt management ratios Companies have the opportunity to use varying amounts of different sources of...