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Which change is most likely to increase r?
Economic Downturn
An economic downturn is a period of reduced economic activity characterized by decreased spending, investment, and employment.
Degree of Financial Leverage
A measure that assesses the impact of debt on a company's earnings, indicating how earnings are affected by the use of debt financing.
Net Income
The total profit of a company after all expenses and taxes have been deducted from revenue, indicating its financial performance over a period.
Debt-Equity Ratio
The ratio determining the mix of equity and borrowed funds utilized for financing a company’s assets.
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