Because financial markets can be extremely volatile, with bond and stock prices changing
significantly from day to day, a firm's management has much greater control over the firm's
operating leverage than over its financial leverage.
Indicate whether the statement is true or false
FALSE
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Answer the following statements true (T) or false (F)
The main change brought about by SFAS No. 158 was to bring the overfunded or underfunded status of a defined benefit plan to the footnotes of the balance sheet.
The Trimbles apply to Community Bank for an installment loan of $20,000 to remodel their bathroom. Discuss the disclosures Community Bank is required to make
Which of the following statements describes how the net payment cost index differs from the surrender cost index?
A) Dividends are ignored. B) The cash value is ignored. C) Premiums are not accumulated at a specified interest rate. D) Dividends are not accumulated at a specified interest rate.
Which one of the following is NOT an advantage to exporters of documentary credits?
A) It substitutes the creditworthiness of the bank for the importer. B) It enhances the probability the exporter will experience delays due to exchange controls. C) It requires strict adherence to the terms. D) It clearly establishes the acts the exporter must perform in order to receive payment.