Question: In general, leverage _ _ _ _ _ _ _ _ _ _ the returns to shareholders if the EBIT is high, and leverage _

In general, leverage __________ the returns to shareholders if the EBIT is high, and leverage ________ the variation of the ROE.
Group of answer choices
increases; decreases
decreases; decreases
decreases; increases
increases; increases

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!