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stranahan stranahan
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7 years ago
Which of the statements below is FALSE?
A) When a company performs well, it can handle more debt and benefit the owners.
B) Assume that the more debt the company has sold, the better off the shareholders are. This is the case where the earnings reflect a return greater than the cost of debt.
C) Financial leverage is the degree to which a firm or individual utilizes borrowed money to make money.
D) Borrowing from debt lenders at one rate and investing the money in the business and making a higher rate is bad for the owners.
Textbook 
Financial Management: Core Concepts

Financial Management: Core Concepts


Edition: 2nd
Author:
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Awful_HomieAwful_Homie
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7 years ago
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stranahan Author
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#2
7 years ago
Thank you very much for this. It's really helpful.
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