Which of the following is/are helpful for evaluating the effect of leverage on a company's...
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Accounting
Which of the following is/are helpful for evaluating the effect of leverage on a company's risk and potential returns?
I. Estimated pro forma coverage ratios
II. The recognition that financing decisions do not affect firm or shareholder value
III. A range of earnings chart and proximity of expected EBIT to the breakeven value
IV. A conservative debt policy that obviates the need to evaluate risk
a. I only b. III only c. I and III only d. II and III only e. IV only
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