The Use of Leverage Will Always Act to Increase a Firm's

question 38

True/False

The use of leverage will always act to increase a firm's ROE.

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Definitions:

Final Judgment

The last court's decision resolving all issues between the parties in a legal action, after which the case is concluded.

Lienholder

A party that has a legal right or interest in a piece of property as security for a debt or charge.

Lien

A legal right or interest that a creditor has in the debtor's property, usually lasting until the debt that it secures is paid.

Legal Action

The process of seeking judicial intervention to enforce or protect a right through a lawsuit or other legal means.