The degree of financial leverage for ABC Inc is 2.5, and the degree of financial leverage for XYZ Corporation is 1.5 . According to this information, which firm is considered to have greater financial risk?
a. ABC Inc.
b. XYZ Corporation.
c. The degree of financial leverage is not a measure of financial risk, so it is not possible to tell which firm has the greater financial risk given the above information.
d. To determine which firm has the greater financial risk, we need to know the operating income (NOI or EBIT) of each firm. XYZ Corporation would have less financial risk if its operating income is at least twice that of ABC Inc.
e. None of the above is a correct answer.
a
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Indicate whether the statement is true or false
The Affordable Care Act requires employers with 100 or more employees to provide health insurance on the employees or pay a penalty if at least one employee receives a tax credit and coverage through the Health Insurance Marketplace
This requirement—providing insurance or paying a fine—is known as the A) single-payer solution. B) employer shared responsibility. C) essential benefit requirement. D) portability requirement.
To be valid (enforceable) a contract must be a voluntary _________________________ between two parties, include something of value called _________________________, ensure that all parties have _________________________, and the contract must be for a lawful purpose and not involve any illegal act.
Fill in the blank(s) with the appropriate word(s).
The proposal does not need to give detailed information about the strategies that will be used for data analysis because not data has been collected at this point.
a) True b) False