Drops below the debt-service constant

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Reference no: EM131587466

If the NOI, as a percent rate of return on assets, drops below the debt-service constant:

a. using financial leverage will reduce the current return on equity.

b. using financial leverage will increase the current return on equity.

c. the greater the financial leverage, the higher the current return on equity.

d. b and c above

Reference no: EM131587466

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