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A Firm Has a Compound Leverage Factor Greater Than 1;

Question 41

Multiple Choice

A firm has a compound leverage factor greater than 1; this indicates that ________.


A) the firm has no interest payments
B) the firm uses less debt as a percentage of financing
C) the firm's interest payments are equal to the firm's pretax profits
D) the firm's debt has a positive contribution to the firm's ROA

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