How does the use of financial leverage affect the risk and return of a company?

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Financial Accounting Information For Decisions

ISBN: 978-0324672701

6th Edition

Authors: Robert w Ingram, Thomas L Albright

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Question Posted: Jun 20, 2012 06:26 AM

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Does the use of financial leverage always have a favorable impact on the firm and its owners? If not, explain the circumstances under which it would not be desirable to employ financial leverage.
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How does the use of financial leverage affect the risk and return of a company?

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Financial leverage magnifies a companys results If the company is profitable to begin ...View the full answer

Financial Accounting Information For Decisions

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