Question: Increasing financial leverage can be a risky strategy from the viewpoint of stockholders of companies having 1. Steady and high profits. 2. Low and falling

Increasing financial leverage can be a risky strategy from the viewpoint of stockholders of companies having 1. Steady and high profits.

2. Low and falling profits.

3. Relatively high and increasing profits.

4. A low debt/equity ratio and relatively high profits.

5. None of the above.

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