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Companies have the opportunity to use varying amounts of different sources of financing, including internal and externat sources, to acquire their aisets, debt (borrowed) funds, and equty funds: Which of the following is considered a financialy leveraged firm? A. company that uses only equify to finance its assets A company that uses debt to finance soenc of its assets Which of the following is true about the leveraging effect? Under economic growth conditions, firms with relatively more leveroge wil have higher expected retums. Under economic growth condibons, firms with relatively low leverseg wall have hogher expected returns. deprecation and amortization). On its balance sheet and income statement, iespectively, it reported tual debt of $1.75 millon on which it pays a 11 s intecest rate