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Choose one answer: Positive and Negative Leverage conclusion: The firm is positively leveraged; increasing leverage will increase ROE. The firm is negatively leveraged; increasing leverage

Choose one answer:

Positive and Negative Leverage conclusion:

The firm is positively leveraged; increasing leverage will increase ROE.

The firm is negatively leveraged; increasing leverage will decrease ROE. The primary problem is low ROA

The firm is negatively leveraged; increasing leverage will decrease ROE. The primary problem is the high Cost of Debt

Not applicable

(

the firm is not leveraged

)

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