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    Fundamentals Of Corporate Finance Study Set 21
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    Exam 16: Financial Leverage and Capital Structure Policy
  5. Question
    When EBIT Is Positive, High Leverage Decreases the Returns to Shareholders
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When EBIT Is Positive, High Leverage Decreases the Returns to Shareholders

Question 369

Question 369

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When EBIT is positive, high leverage decreases the returns to shareholders (as measured by ROE).

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