Which of the following is true about the leveraging, Financial Management

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Which of the following is true about the leveraging

Which of the following is true about the leveraging effect?

a) Using leverage reduces the potential of gains and losses.

b) Using leverage can generate shareholder wealth, but if a company fails to make payments on its debt, credit default can reduce shareholder wealth.

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Financial Management: Which of the following is true about the leveraging

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Financial Management: Which of the following is true about the leveraging

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