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Shareholders TRUE/FALSE 1. The degree of financial leverage is the multiplication factor by which debt to equity changes as new debt is issued. 2. Using financial leverage results in a fixed change that can materially affect the earnings available to the common shareholders. 3. The price/earnings ratio expresses the relationship between selling prices of the company’s products and the related earnings. 4. A firm might have a low dividend payout ratio if it were planning a major expansion. 5. Dividend yield relates dividends per share to market price per share. Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help


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