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3. Increasing financial leverage (when EBIT is positive) will lead to the following EXCEPT: 5 (1 Point) Will decrease cost of equity if the company

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3. Increasing financial leverage (when EBIT is positive) will lead to the following EXCEPT: 5 (1 Point) Will decrease cost of equity if the company pays taxes Will increase cost of equity Increases the sensitivity of EPS and ROE to changes in EBIT. Will increase the value of a firm if the company pays taxes

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