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:

Verified
Correct Answer:
Verified
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