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A higher degree of financial leverage may be desirable for:

Looking for the answer to the question below related to Financial Management?

A higher degree of financial leverage may be desirable for:

 Options:

A. a stable firm, with positive growth, under favorable economic conditions
B. an unstable firm operating in an uncertain environment
C. a stable firm operating in an uncertain environment
D. neither the stable nor unstable firm under any circumstances

 

The Correct Answer Is:

  • A. a stable firm, with positive growth, under favorable economic conditions

 

Conclusion

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