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    Intermediate Accounting Study Set 2
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    Exam 3: The Balance Sheet and Financial Disclosures
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    A Company That Borrows Funds at 6% and Then Generates
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A Company That Borrows Funds at 6% and Then Generates

Question 54

Question 54

Multiple Choice

A company that borrows funds at 6% and then generates a return on those funds of 9% typically has:


A) Greater default risk.
B) Favorable financial leverage.
C) Higher return on equity.
D) All of the other answers are true.

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