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Why is Return on Equity so important to a business? What can go wrong with financial leverage? Should it be used at all by a

  1. Why is Return on Equity so important to a business?
  2. What can go wrong with financial leverage? Should it be used at all by a business?
  3. What are two sources of cash for a business and why is cash inflow important?
  4. What do you think the most important cash flow is for a business and why? Please choose operating, investment, or financing activities.

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