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Consider the following reaction sequence. Which of the following statements is true of this reaction sequence?
Financial Leverage
The use of borrowed funds with a fixed cost in order to increase the potential return to shareholders.
Incremental
Relating to or denoting an increase or addition, especially one of a series on a fixed scale.
After-tax Cost
The cost of financing or an expense after accounting for the effects of income tax, often used to compare the true costs of financing options.
Customer Loyalty
The likelihood of repeated business from a customer demonstrated by their repeat purchases or preference for a business's product or service over competitors.
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