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If a firm is using financial leverage successfully what would be the impact of doubling operating earnings? The return on equity will decline by half.
If a firm is using financial leverage successfully what would be the impact of doubling operating earnings?
| The return on equity will decline by half. |
| The return on equity will increase, but not double. |
| The return on equity will double. |
| The return on equity will more than double. |
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