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What are the two reasons why financial leverage improves the rate of returns to stockholders or...

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Accounting

What are the two reasons why financial leverage improves therate of returns to stockholders or owners, kindly explain. Thankyou.

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Financial leverage represents the quantum to which a company sources funds from fixedincome securities which includes debt bonds and preferred stock Following reasons can be ruled    See Answer
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What are the two reasons why financial leverage improves therate of returns to stockholders or owners, kindly explain. Thankyou.

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