The expected return for common stockholders

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Reference no: EM13976199

In general, if the proper amount of debt is used, such financial leverage will ______ the expected return for common stockholders (e.g., Expected ROE) and, at the same time, ______ the risk for them (e.g., standard deviation of ROE, CV of ROE).

A. increase; increase

B. decrease; decrease

C. decrease; increase

D. increase; decrease

E. not affect; not affect

Reference no: EM13976199

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