Which of the Following Statements Is Correct

question 85

Multiple Choice

Which of the following statements is correct?

• A) Leverage reduces the risk of equity even when there is no risk that the firm will default.
• B) Leverage increases the risk of debt even when there is no risk that the firm will default.
• C) Leverage increases the risk of equity even when there is no risk that the firm will default.
• D) Leverage reduces the risk of debt even when there is no risk that the firm will default.

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Definitions:

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The study of ideologies and beliefs about how economies should work, including the evaluation of economic policies and principles.

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