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The use of financial leverage by the firm has NO potential impact on which of the following? (1) The risk associated with the firm's operations. (2) The risk experienced by the stockholders (3) The return required by the stockholders (4) The variability of operating income (5) The variability of net income A) 3, 5 B) 2, 3 C) 2, 4 D) 1, 4 E) 1, 2.

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The use of financial leverage by the firm has NO potential impact on which of the following? (1) The risk associated with the firm's operations. (2) The risk experienced by the stockholders (3) The return required by the stockholders (4) The variability of operating income (5) The variability of net income A) 3, 5 B) 2, 3 C) 2, 4 D) 1, 4 E) 1, 2

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  • 1. The use of financial leverage by the firm has NO potential impact on which of the following? (1) The risk associated with the firm's operations. (2) The risk experienced by the stockholders (3) The return required by the stockholders (4) The variability of operating income (5) The variability of net income A) 3, 5 B) 2, 3 C) 2, 4 D) 1, 4 E) 1, 2