Financial leverage is an important finance term that results from which of the following scenarios? a. When

Question:

Financial leverage is an important finance term that results from which of the following scenarios?

a. When a company earns a higher rate of return through effectively managing borrowed funds than it is paying in interest, it increases its return of equity to shareholders

b. When shareholders can invest funds and earn a high return on equity from their investment

c. When shareholders control access to funds within the organization and are able to generate a positive return on investment

d. All of the above.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamental Accounting Principles Volume II

ISBN: 978-1260305838

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

Question Posted: