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Which of the following statements about financial leverage is false? A . A company with a high level of financial leverage has to be able
Which of the following statements about financial leverage is false?
A A company with a high level of financial leverage has to be able to cover their principal and interest payment in order to stay solvent.
B The higher the financial leverage of a company, the more debt the company has in their capital structure.
C Financial leverage is said to be an equity booster.
D Financial leverage is a booster to a company's Return on Sales Profit Margin
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