Langley has a debt ratio of 0.3 and its competitor, Appleton, has a debt ratio equal to 0.7. Determine the statement below that is correct.
A. Appleton's financial leverage is less than Langley's financial leverage.
B. Higher financial leverage involves lower risk.
C. Langley has a higher risk from its financial leverage.
D. Appleton finances a smaller percentage of its assets with liabilities as compared to Langley.
E. Appleton's financial leverage is greater than Langley's financial leverage.
Answer: E
You might also like to view...
Which of the following is not a commonly used approach to setting transfer prices?
A) Market price approach B) Revenue price approach C) Negotiated price approach D) Cost price approach
_____ is a form of a microblog and allows you to send and receive text messages of roughly 140 characters or fewer.
A. Huddle B. A tweet C. Sparks D. A Circle
The most widespread form of psychological withdrawal among white-collar employees is ________, using Internet, e-mail, and instant messaging access for their personal enjoyment rather than work duties.
A. socializing B. daydreaming C. cyberloafing D. moonlighting E. satisficing
An uncommitted line of credit is obtained through a nonbinding, informal agreement
Indicate whether this statement is true or false.