Kizspy | Question: 39
(Choose 1 answer)
Which one of the following statements is NOT correct?
A. A leveraged firm is riskier than a firm that has no leverage.
B. A leveraged firm is less risky than a firm that has no leverage.
C. A firm that uses debt magnifies the return on equity ratio.
D. A firm that does not use debt incurs an opportunity cost of increasing the value of shares.
