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When a firm has financial leverage: A. ROI will be greater than ROE B. ROI will usually be less than it would be without leverage
When a firm has financial leverage:
A. ROI will be greater than ROE
B. ROI will usually be less than it would be without leverage
C. risk is greater than if there isn't any leverage
D. should be evaluated by observing the turnover trend over a period of time.
I know B is wrong, but A, C, D are all look ok to me.
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