Volatility or Blank______ increases for equity holders when leverage increases. Multiple choice question. inevitability certaint

Question

noname [10]

2 years ago

8

Volatility or Blank______ increases for equity holders when leverage increases. Multiple choice question. inevitability certaint

y yield-to-maturity

Business

1 answer:

netineya [11] · Answer 1 · 2023-03-25T23:21:31+03:00

The factors that increase for equity holders when the amount of leverage increases is d. risk.

<h3 /><h3>What does an increase in leverage lead to?</h3>

When there is an increase in the leverage that a company holds, the worry that the company will not be able to pay off the debt also increases.

This leads to more risk and volatility in company stock which would be felt by equity holders.

Remaining part of question:
a. inevitability.

b. certainty.

c. yield-to-maturity

d. risk.

Find out more on the effects of risk on stock at brainly.com/question/11645484.

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