Other things equal,a higher leverage ratio implies:

Name: Other things equal,a higher leverage ratio implies:
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Quizplus · Accepted Answer

Higher leverage increases the financial risk for shareholders, as they have a higher amount of debt obligations to fulfill. It does not necessarily imply a higher return on assets (ROA) or a lower return on equity (ROE). Financial risk and leverage have an inverse relationship, meaning that higher leverage implies greater financial risk for shareholders.

Other Things Equal,a Higher Leverage Ratio Implies