The intuition behind the benefits of financial leverage is that a firm can borrow funds that bear
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The cost of borrowing increases as a firm becomes more levered Thus although a firms ROA may exceed ...View the full answer
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Related Book For 
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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