Investors require a higher return on ordinary share investments if a firm uses less leverage.

Name: Investors require a higher return on ordinary share investments if a firm uses less leverage.
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Quizplus · Accepted Answer

This statement is false. Investors may actually require a lower return on ordinary share investments if a firm uses less leverage, because a lower level of debt signifies less financial risk and potentially higher stability for the company.

Investors Require a Higher Return on Ordinary Share Investments If