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A company has favorable financial leverage when a. it uses borrowed funds to earn a higher rate of return than the rate of interest paid
A company has favorable financial leverage when
a. | it uses borrowed funds to earn a higher rate of return than the rate of interest paid on the borrowed money. | |
b. | it issues debt rather than capital stock. | |
c. | earnings per share increase each year. | |
d. | too much is paid out in cash for interest. | |
e. | none of the above |
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