Attempts Keep the Highest: /3 4. Debt management ratios As Aa Companies have the opportunity I including internal and extemal sources, and debt (borrowed) and equity funds. to use varying amounts of different sources of financing to acquire their assets, Company A uses long-term debt to finance its assets, and company B uses capital generated from shareholders to finance its assets. Which company would be considered a financially leveraged firm? Q Company A OCompany B Which of the folowing is true about the leveraging effect? O Under economic growth conditions, firms with relatively more leverage will have higher expected returns OUnder economic growth conditions, firms with relatively low leverage will have higher expected returns. The U.S. tax structure influences a firm's willingness to finance with debt. The tax structure debt more