Which one of the following statements is NOT correct?
A) A leveraged firm is more risky than a firm that is not leveraged.
B) A leveraged firm is less risky than a firm that is not leveraged.
C) A firm that uses debt magnifies the return to its shareholders.
D) All of the above statements are correct.
Answer: B) A leveraged firm is less risky than a firm that is not leveraged.
You might also like to view...
When the variable cost per unit increases, the total number of units required to break even also increases
Indicate whether the statement is true or false
A ________ has been defined as a coordinated collection of data, systems, tools, and techniques with supporting software and hardware by which an organization gathers and interprets relevant information from business and environment and turns it into
a basis for marketing action. A) marketing metric B) marketing channel system C) marketing decision support system D) marketing research system E) database management system