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With respect to financial leverage which of the following is not a valid statement? Multiple Choice Return on assets will generally equal return on common
With respect to financial leverage which of the following is not a valid statement?
Multiple Choice
Return on assets will generally equal return on common equity except when the company has no longterm debt.
Financial leverage makes bad years look worse by decreasing the shareholder return.
Financial leverage is beneficial when the company earns more than the incremental aftertax cost of debt.
Financial leverage makes good years look better by increasing the shareholder return.
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