Question: What is the most likely impact of a decrease in financial leverage on the cash outflows for a business? Higher cash outflows can be expected

What is the most likely impact of a decrease in financial leverage on the cash outflows for a business?

Higher cash outflows can be expected as a result of higher dividends.

Cash outflows are likely to decrease, because payments due to third

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party finance providers will be lower.

There will be little or no impact, because payments to shareholders are likely to increase and offset the benefit of reductions in payments to third parties.

What is the most likely impact of a decrease in

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