What Is the Main Advantage of Financial Leverage

question 85

Multiple Choice

What is the main advantage of financial leverage?

• A)reduces the firm's interest expense
• B)increases the expected return to shareholders
• C)reduces the amount of risk the firm faces
• D)provides the firm with more flexible financing

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Definitions:

Identify New Opportunities

The process of recognizing new business prospects or areas for growth and development.

Unmet Needs

Refers to the gap between the current market offerings and the desires or requirements of customers that are not being addressed.

Repurpose

To adapt something for a new use different from its original purpose.

Creating And Identifying

The process of generating new ideas or concepts and recognizing their potential value or significance.