27.Which of the following is not true for a highly geared company?

Group of answer choices

1.The company is not as risky as a low-geared company.

2.Falls in interest rates are more beneficial to shareholders than they would be for a low-geared company.

3.Returns are affected more by increases in interest rates than are those of a low-geared company.

4.The company is vulnerable to decreases in the profit margin