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Negative financial leverage occurs when the a)average net (after tax) interest rate on borrowed funds is less than the company's earnings rate on its assets.

Negative financial leverage occurs when the a)average net (after tax) interest rate on borrowed funds is less than the company's earnings rate on its assets. b)return on assets is more than return on equity. c)return on equity is more than return on assets. d)operating expenses exceed gross margin.

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