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    Principles of Corporate Finance Study Set 4
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    Exam 10: Leverage and Capital Structure
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    Because Risk Premiums Increase with Increases in Financial Leverage, the Maximization
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Because Risk Premiums Increase with Increases in Financial Leverage, the Maximization

Question 10

Question 10

True/False

Because risk premiums increase with increases in financial leverage, the maximization of EPS does not assure owners' wealth maximization.

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