Higher debt equity ratio (Debt/Equity) results in Equity

lower financial risk

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higher degree of operating risk.

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higher degree of financial risk

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higher EPS

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Solution

The correct option is C
higher degree of financial risk

Higher debt equity ratio results in higher degree of financial risk.

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Similar questions

(\frac{D e b t}{E q u i t y})

Higher debt-equity ratio results in:

Debt Equity Ratio = ___/ Shareholder`s funds

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