Question: CHAPTER 3 : Leverage Analysis 2 0 . Read and understand the Leverage Analysis and select which of the following statements are incorrect: a )

CHAPTER 3: Leverage Analysis 20. Read and understand the Leverage Analysis and select which of the following statements are incorrect: a) In order to maximize value, a company should increase its tolerance of risk. b) Value is inversely related to the expectations of investors. c) Increasing the proportion of debt in a company will reduce expected returns to shareholders. i. a and b ii. b and c iii. a and c iv. a, b and c

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