The only question I have is the last question, thanks!

Aa Aa ULL (borrowed) for financing their assets-internal resources as well as extemal resources, and deb as well as equity funds. Company A uses long-term debt to finance its assets, and company B uses capital generated from shareholders to finance its assets. Which company would be considered a financial leveraged firm? lly Company A O Company B Which of the following is true about the leveraging effect? Interest on debt can be deducted, leading to lower taxable income and lower taxes. Q Interest on debt can be deducted, leading to higher taxable income and a lower available operating income. Influenced by a firm's ability to make interest payments and pay back its debt, f all else is equal, creditors would prefer to give loans to companies with low debt ratios. HE Search the web and Windows Fujirsu