What is financial leverage?
A. The presence of fixed operating costs that do not change when the level of sales changes
B. The portion of dividend paid out to the common stockholders
C. The risk associated with a firm's operations, ignoring any financing effects
D. The combination of debt and equity used to finance a firm
E. The extent to which fixed-income securities are used in a firm's capital structure
Answer: E
You might also like to view...
When a magazine company receives advance payment for a subscription, what is the required journal entry to be recorded?
a. Cash – Debit; Unearned Subscriptions Revenue – Credit b. Prepaid Subscriptions – Debit; Cash – Credit c. Cash – Debit; Subscriptions Revenue – Credit d. Unearned Subscriptions Revenue – Debit; Cash – Credit
The three basic sentence types are compound-complex, complex, and simple
Indicate whether the statement is true or false
You are acting ethically if you imply but do not state that an idea is much more important than it is
Indicate whether the statement is true or false
A blog is a website with journal entries that are usually written by one person
Indicate whether the statement is true or false