Increasing a company's outstanding equity will increase company leverage.

Name: Increasing a company's outstanding equity will increase company leverage.
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Quizplus · Accepted Answer

Increasing a company's outstanding equity does not increase the company's leverage because equity is a form of financing that does not have to be repaid and does not involve interest expenses. Leverage refers to the degree to which a company uses debt financing to fund its operations, and increasing equity does not affect the company's debt levels.

Increasing a Company's Outstanding Equity Will Increase Company Leverage