The Use of Debt Financing Ensures an Increase in Return

question 14

True/False

The use of debt financing ensures an increase in return on equity.

Evaluate stocks based on dividends and price appreciation as main components of future cash flows.

Understand the impact of growth rates and required rates of return on stock valuation.

Apply practical knowledge in determining the maximum price to pay for a stock based on its expected dividends and selling price in the future.

Understand the goal of investors to maximize returns while minimizing risk.