Question:Financial leverage can increase the return to common shareholders as long as ______________.
A the rate of return earned on assets equals the rate paid for the capital used to acquire those assets
B the rate of return earned on assets is less than the rate paid for the capital used to acquire those assets
C the rate of return earned on assets exceeds the rate paid for the capital used to acquire those assets
D the firm has a "good" earnings year
+ AnswerB
+ Explanation
+ Report
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