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Author Question: The main disadvantage of financial leverage is that it: A) increases the taxes of firms that use it. ... (Read 43 times)

Haya94

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on: Jul 14, 2018
The main disadvantage of financial leverage is that it:
 A) increases the taxes of firms that use it.
  B) requires owners to invest even more of their own money.
  C) reduces the financial return to stockholders when times are bad.
  D) requires firms that use it to make higher dividend payments.

Question 2

Preferred stockholders receive dividends before dividends are paid to common stockholders.
 
 Indicate whether the statement is true or false


yifu223

  • Sr. Member
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  • Posts: 302
Reply #1 on: Jul 14, 2018
Answer to Question 1

C

Answer to Question 2

True


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