The intuition behind the benefits of financial leverage is that a firm can borrow funds that bear
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The cost of borrowing increases as a firm becomes more levered Thus although a firms ROA may exceed ...View the full answer
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Related Book For 
Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
ISBN: 140
7th Edition
Authors: James M Wahlen, Stephen P Baginskl, Mark T Bradshaw
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