Increasing financial leverage (gearing) cannot: a. Alter the relationship between profit margins, sales volumes and...
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Accounting
Increasing financial leverage (gearing) cannot: a. Alter the relationship between profit margins, sales volumes and return on equity. b. Be accomplished by declaring and paying a large cash dividend. c. Be accomplished by paying off a large portion of debt with cash. d. Alter the firms risk characteristics e. Increase the firms expected return on equity (ROE).
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