As the financial leverage of a company increases, it leads to

R

Ram Sharma • 193.88K Points
Coach

Q. As the financial leverage of a company increases, it leads to

(A) A decline in the cost of funds but an increase in the financial risk
(B) An increase in the cost of funds but a decline in the financial risk
(C) Both an increase in the cost of funds and financial risk
(D) Both a decline in the cost of funds and financial risk

Correct Answer - Option (A)

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