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Question 14 Why does a company use "leverage"? Select an answer: To maximize...

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Accounting

Question 14

Why does a company use "leverage"?

Select an answer:

  • To maximize the amount of assets it can buy with equity

  • To maximize the Asset-to-Debt Ratio of the company

  • To buy more assets with borrowing than it can with just equity

  • To pay liabilities without having to use owners' equity

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