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| Which of the following is accurate regarding a company with a high degree of financial leverage and significant losses for the period? A. Common stockholders are better off than they would have been if the firm was not as heavily leveraged. B. It is impossible to determine the effect without knowing the operating leverage. C. Common stockholders are worse off than they would have been if the firm was not as heavily leveraged. D. The extent of financial leverage is not relevant to the well-being of common stockholders. |