Which of the following is true about the leveraging effect? Under economic growth conditions, firms with relatively more leverage will have higher expected returns. Under economic growth conditions, firms with relatively low leverage will have higher expected returns. depreciation and amortization). On its balance sheet and income statement, respectively, it reported total debt of $1.75 million on which it 7% interest rate. what are the values for Red Snail Satellite's debt management ratios? Influenced by a firm's ability to make interest payments and pay back its debt, if all else is equal, creditors would prefer to give loans to companies with times-interest-earned ratios (TIE)