What does a financial leverage index greater than one indicate about a firm? (a) The unsuccessful use

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What does a financial leverage index greater than one indicate about a firm?

(a) The unsuccessful use of financial leverage.

(b) Operating returns more than sufficient to cover interest payments on borrowed funds.

(c) More debt financing than equity financing.

(d) An increased level of borrowing.

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Related Book For  answer-question

Understanding Financial Statements

ISBN: 9781292101552

11th Global Edition

Authors: Lyn Fraser, Aileen M. Ormiston

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