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With respect to financial leverage which of the following is a valid statement? Group of...

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Accounting

With respect to financial leverage which of the following is a valid statement?

Group of answer choices

Financial leverage is beneficial when the company earns less than the incremental cost of debt.

Financial leverage makes good years look worse by increasing the shareholder return.

Financial leverage makes bad years look better by decreasing the shareholder return.

Return on assets will generally equal return on equity when the company has no long-term debt.

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