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A company with leverage, of a leveraged company A company with no leverage, or an unleveraged company Which of the foliowing is true about the
A company with leverage, of a leveraged company A company with no leverage, or an unleveraged company Which of the foliowing is true about the leveraging effect? Under economic growth conditions, firms with relatively more leverage wat have higher expected returns. Under economic growth conditions, firms with relatively low leverage will have higher expected returns. Blue Sky Drone Company has a total asset tumover ratio of 8.50x, net annual sales of $25 millon, and operating expenses of $11 mon (including depreciation and amortization). On its balance sheet and income statement, respectively, it reported total debt of $1.75 millon on which it pays a 11% interest rate. To analyze a company's francal leverage situation, you need to measure the fim's debt management ratios. Based on the preceding information, what are the values for Blue Sky Drone's debt management ratios? The US tax structure influences a firm's wilngness to finance with debt. The tax structure
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