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Although Hargrove Co

Question 57

Multiple Choice

Although Hargrove Co. makes enough money to pay for everything it needs, it still chooses to have some debt and pay a larger portion of retained earnings back to the stockholders. What is likely the best explanation for this decision?


A) Reduced interest rate
B) Financial leverage
C) Return multiplier
D) Equity leverage
E) Debt multiplier

Correct Answer:

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