Question: Indicate whether the statements below are true or false. If the answer is true, explain why it is true. If the answer is false, explain

Indicate whether the statements below are true or false. If the answer is true, explain why it is true. If the answer is false, explain why it is false.

Feel free to give examples or counter-examples.

Given the business risk of a firm, the firms equity return (E) does not change with its leverage.

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