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    Business
  3. Study Set
    Principles of Managerial Finance
  4. Exam
    Exam 3: Financial Statements and Ratio Analysis
  5. Question
    The Higher the Debt Ratio, the More Financial Leverage a Firm
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The Higher the Debt Ratio, the More Financial Leverage a Firm

Question 183

Question 183

True/False

The higher the debt ratio, the more financial leverage a firm has and, thus, the greater will be its risk and return.

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