Question

Financial leverage:

a. Arises because most borrowed funds have a fixed interest rate.

b. Arises because most borrowed funds have a variable interest rate.

c. Usually has no bearing on the risk associated with a company.

d. Is a concept that does not apply to individuals.

Answer 1

Financial leverage :

=> Option ( A )

Arises because most borrowed funds have a fixed interest rate.

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Answer 2

Answer:

A) Arises because most borrowed funds have a fixed interest rate