If a company sells bonds and uses the proceeds to buy back common stock,the company's financial leverage with increase.

Name: If a company sells bonds and uses the proceeds to buy back common stock,the company's financial leverage with increase.
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When a company sells bonds and uses the proceeds to buy back common stock, it reduces the amount of equity in the company and increases its debt, which leads to an increase in financial leverage.

If a Company Sells Bonds and Uses the Proceeds to Buy