Positive financial leverage indicates a. Positive cash flow from financing activities. b. A debt-to-equity ratio higher than

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Positive financial leverage indicates

a. Positive cash flow from financing activities.

b. A debt-to-equity ratio higher than 1 .

c. A rate of return on assets exceeding the interest rate on debt.

d. A profit margin in one year exceeding the previous year's profit margin.

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Financial Accounting

ISBN: 9780078111020

7th Edition

Authors: Robert Libby, Patricia A Libby

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