Borrowing cannot increase the value of equity because it always adds risk and stockholders are risk averse.
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Q107: If a company has fixed costs of
Q108: _ is related to a company's cost
Q109: Fixed cost is also called:
A)expenses.
B)overhead.
C)variables.
D)depreciation.
Q110: Financial leverage affects a firm's EBIT.
Q111: _ include(s)direct labor and direct materials as
Q113: A company has EBIT of $2,400,000 and
Q114: _ analysis shows the mix of fixed
Q115: Adding debt decreases EBIT and Net Income
Q116: Increasing debt only increases the risk of
Q117: As a community service, the local YWCA
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