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XYZ Company invests $550 million in mortgages paying 9% interest. XYZ's owners have provided $50 million and the company has borrowed the other $500

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XYZ Company invests $550 million in mortgages paying 9% interest. XYZ's owners have provided $50 million and the company has borrowed the other $500 million with short-term loans at 4% interest. XYZ company is... a. attempting to increase its returns with leveraging Ob. is leveraged at 10 to 1 Oc. both of the above

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