Условие:
Which statement about the leverage effect is correct? (1 point)
a. The leverage effect can be mitigated by limited borrowing options for a company.
b. If a company borrows debt capital from a bank at 2\% interest per year and then invests it in the stock market at 5\% average annual return, given constant profit, no leverage effect can be achieved.
c. The leverage effect describes the leverage effect of the cost of equity on corporate taxes.
d. The prerequisite for a positive leverage effect is that the return on total capital is below the borrowing interest rate.
None of the statements a. to d. is correct.