Multiple Choice
The use of homemade leverage:
A) Optimizes the profitability of a firm.
B) Minimizes the weighted average cost of capital for a firm.
C) Makes the capital structure of a firm irrelevant.
D) Is effective only when investors own shares of all-equity firms.
E) Increases the debt-equity ratio of a firm.
Correct Answer:
Verified
Correct Answer:
Verified
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