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Which one of the following statements related to financial leverage is correct? a. A firm with higher financial leverage has higher free cash flow. b.

Which one of the following statements related to financial leverage is correct?

a. A firm with higher financial leverage has higher free cash flow.

b. A firm with lower financial leverage has higher return to investors.

c. A firm with lower financial leverage has higher net working capital.

d. A firm with higher financial leverage has higher amount of debt in dollars on the balance sheet

e. A firm with higher financial leverage has higher probability of financial distress

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