Question: Question 1 2 pts Managers are incented to avoid using debt as a financing tool, since it improves ROE in good times. True False Question

Question 1 2 pts Managers are incented to avoid using debt as a financing tool, since it improves ROE in good times. True False Question 2 2 pts The term "Financial Leverage' refers to the use of debt to finance a firm's operations. True False Question 3 2 pts The company's shareholders want the company to generate a high Return on Equity, because that represents that the company is using its equity efficiently, Trud False

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