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When EBIT Is Positive, High Leverage Decreases the Returns to Shareholders

question 369

True/False

When EBIT is positive, high leverage decreases the returns to shareholders (as measured by ROE).


Definitions:

Physical Arousal

The physiological state of being awoken or activated, often referencing the body's response to stimuli such as excitement, exercise, or sexual interest.

Companionate Love

A deep, affectionate attachment characterized by mutual respect, affection, and commitment, rather than by passion.

Self-Disclosure

The act of revealing personal, private information about oneself to others, which plays an integral role in forming close relationships.

Positive Support

Encouragement and assistance provided by others that enhances well-being and facilitates achievement of goals.

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