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The use of financial leverage will be detrimental to a firm's ROE if the: Multiple Choice firm currently has no long - term debt. firm's

The use of financial leverage will be detrimental to a firm's ROE if the:

Multiple Choice

firm currently has no long

-

term debt.

firm's current ratio is greater than

1 .

interest expense exceeds the tax liability.

interest rate on debt exceeds the firm's ROA.

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