If a firm increases its use of financial leverage,then what would we generally expect for the shareholders of that firm to

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When a firm increases its use of financial leverage, it means that they are using more debt to finance their operations. This increases the financial risk for the firm and, as a result, shareholders demand a higher return on their investment to compensate for this risk. Therefore, the shareholders would likely increase their demand for return on their investment.

If a Firm Increases Its Use of Financial Leverage,then What