Question: When a firm has financial leverage: A. ROI will be greater than ROE. B. ROI will usually be less than it would be without leverage.

When a firm has financial leverage: A. ROI will be greater than ROE. B. ROI will usually be less than it would be without leverage. C. risk is greater than if there isn't any leverage. D. the firm will always have a higher ROE than it would without leverage.

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 Accounting Questions!