What is the purpose of financial leverage?a) To reduce the cost of equityb) To increase the return on equity through borrowingc) To increase dividends to shareholdersd) To increase the company's cash flow

What is the purpose of financial leverage?a) To reduce the cost of equityb) To increase the return on equity through borrowingc) To increase dividends to shareholdersd) To increase the company's cash flow

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 12MC: The cost of equity is _______. A. the interest associated with debt B. the rate of return required...

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What is the purpose of financial leverage?
a) To reduce the cost of equity
b) To increase the return on equity through borrowing
c) To increase dividends to shareholders
d) To increase the company's cash flow

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