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Which of the following describes a positive leverage? It is when the return on borrowed funds is greater than the cost of the debt It

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Which of the following describes a positive leverage? It is when the return on borrowed funds is greater than the cost of the debt It takes into account the cost of the capital being used to generate profits It shows how much a firm's returns co-vary with an index of the general market returns It is the mixture of debt and equity used by the firm It breaks up return on equity into sub elements

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