Holding all other factors constant, a firm that is subject to a greater level of business risk should employ less financial leverage than an otherwise equivalent firm that is subject to a lesser level of business risk
Indicate whether the statement is true or false
TRUE
You might also like to view...
The bullwhip effect enables different stages of the supply chain to have a consistent estimate of what demand looks like
Indicate whether the statement is true or false.
Some fundamental concepts that nonfinancial managers need to understand include:
A) the ability to assess day-to-day cash management. B) the ability to assess future financing requirements. C) the ability to understand the role of capital markets in raising long-term funds. D) All of the above.
Which of the following statements are true relative to US GAAP and IFRS consolidation rules?
A. US GAAP and IFRS both use the notion of control to determine whether consolidation is appropriate. B. US GAAP allows for two consolidation models, the VIE model and the voting interest model. C. All of the given statements are true relative to US GAAP and IFRS consolidation rules. D. US GAAP and IFRS differ to some degree as to the definition of control.
Durrand Corporation’s accumulated depreciation increased by $12,000, while patents decreased by $2,200 between consecutive balance sheet dates. There were no purchases or sales of depreciable or intangible assets during the year. In addition, the income statement showed a gain of $4,300 from sale of land. Reconcile a net income of $65,000 to net cash flow from operating activities.
What will be an ideal response?