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Real Estate Principles 3rd Edition by David Ling,Wayne Archer
Edition 3ISBN: 978-0073377322Real Estate Principles 3rd Edition by David Ling,Wayne Archer
Edition 3ISBN: 978-0073377322 Exercise 20
As a general rule, using financial leverage:
A) Decreases risk to the equity investor.
B) Increases risk to the equity investor.
C) Has no impact on risk to the equity investor.
D) May increase or decrease risk to the equity investor, depending on the income tax treatment of the interest expense and the equity investor's marginal income tax bracket.
A) Decreases risk to the equity investor.
B) Increases risk to the equity investor.
C) Has no impact on risk to the equity investor.
D) May increase or decrease risk to the equity investor, depending on the income tax treatment of the interest expense and the equity investor's marginal income tax bracket.
Explanation
Verified
Verified
B. increas...
Real Estate Principles 3rd Edition by David Ling,Wayne Archer
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