What is positive financial leverage?
What will be an ideal response?
Positive financial leverage is a situation where the value gained from acquiring an asset using debt is greater than the cost of borrowing.
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______ is a theory that proposes that employees are motivated when their perceived inputs equal outputs.
a. Equity theory b. Reinforcement theory c. Goal-setting theory d. Expectancy theory
The United States and a Latin American country signed a treaty whereby the United States agreed to assist the Latin American country in controlling drug traffic. The United States, following the treaty, seized 100 square meters of land and bulldozed it, because it was a suspected haven of drug smuggling. The land in question was in Latin America, but belonged to an American citizen. Which of the
following is correct? a. The treaty will supersede any general Constitutional rights because the treaty gave specific authorization for the act. b. The act was not offensive to the Constitution, because it occurred in Latin America. c. Constitutional rights apply to people, not to property. d. Constitutional rights supersede treaties.
A simplified scoring model is used to determine that project Cow has a score of 38 and project GiGi has a score of 30. Project Cow is therefore 26.7% better than project GiGi
Indicate whether the statement is true or false
Considering the economic value added (EVA) of a firm, which of the following should increase the firm's value??
A. ?EVA = 0 B. ?EVA > 0 C. ?EVA < 0 D. ?EVA > EPS E. ?P/E ratio > EVA