Question
Some industries or companies have a high level of debt on their balance sheet. This leverage makes their earnings __________ and investment in this company
Some industries or companies have a high level of debt on their balance sheet. This leverage makes their earnings __________ and investment in this company becomes risky. So, ___________ is not an ideal measure to compare two companies with different debt proportions
a)Volatile, unlevered beta
b)High, levered beta
c)Volatile, levered beta
d)Low, levered beta
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Principles of managerial finance
Authors: Lawrence J Gitman, Chad J Zutter
12th edition
9780321524133, 132479540, 321524136, 978-0132479547
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