Answered: Financial leverage is also known as…

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Financial leverage is also known as a.Trading on equity b.Trading on debt c.Interest on debt d.Interest on equity

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter11: Determining The Cost Of Capital

Section: Chapter Questions

Problem 6MC

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Question

Financial leverage is also known as

a.Trading on equity

b.Trading on debt

c.Interest on debt

d.Interest on equity

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