Question: Increased leverage allows companies to control more assets and increase their ROE. What's bad about leverage? Leverage-based profits are not cash-based and are ignored by

Increased leverage allows companies to control more assets and increase their

Increased leverage allows companies to control more assets and increase their ROE. What's bad about leverage? Leverage-based profits are not cash-based and are ignored by finance. Leverage multiplies losses, too, as it increases a company's risk 2 It reduces productivity, which can decrease overall ROE

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