Which of the Following Statements Is Correct

question 60

Multiple Choice

Which of the following statements is correct?

• A)The return on equity increases as leverage increases.
• B)The earnings per share decreases as leverage increases.
• C)The risk of the equity remains constant as leverage increases.
• D)All of the above.

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Definitions:

Boycott

A form of protest involving the refusal to buy, use, or participate in something as a way to express dissatisfaction or push for change.

British Goods

Products manufactured in Great Britain, often associated with historical trade and importation contexts.

American War Of Independence

The conflict between Great Britain and thirteen of its North American colonies, which declared their independence as the United States of America.

Battles

Conflicts between two or more armed forces, or combatants, typically of significant scale, which are decisive in the outcome of broader conflicts or wars.