Multiple Choice
Which one of the following statements is NOT correct?
A) A leveraged firm is riskier than a firm that has no leverage.
B) A leveraged firm is less risky than a firm that has no leverage.
C) A firm that uses debt magnifies the return to its shareholders.
D) A firm that does not use debt incurs opportunity cost of increasing value of shares.
Correct Answer:
Verified
Correct Answer:
Verified
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