Post Utme Futo 2023 Commerce Question 10

Practice objective / multiple choice question 10 from the 2023 Post Utme Futo Commerce examination.

Post Utme Futo 2023 Commerce Objective / Multiple Choice
Question 10 POST_UTME_FUTO • 2023 • COMMERCE • objective

A company's financial leverage is the use of debt financing to increase its return on equity. Which of the following is a benefit of financial leverage?

Answer Options

A. Increased risk
B. Decreased return on equity
Correct Answer C. Increased return on equity
D. No effect on return on equity
Correct Answer
C
Correct Option:
Increased return on equity

About This Question

This is Post Utme Futo 2023 Commerce Question 10. It is one of the objective questions from the 2023 Post Utme Futo Commerce examination.

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