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All Things Being Otherwise Equal,when a Business Entity Is Created,choosing

Question 18

Multiple Choice

All things being otherwise equal,when a business entity is created,choosing a significantly higher financial leverage ratio (than the rule of the three thirds would command) will generally lead to (compared to a lower leverage ratio) :


A) Larger earnings and larger earnings per share
B) Lower earnings and higher ROE
C) Higher earnings and lower ROE
D) Lower earnings and lower earnings per share

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