Successful Use of Financial Leverage Requires a Firm to

question 191

Multiple Choice

Successful use of financial leverage requires a firm to

• A) negotiate with lenders to establish a line of credit.
• B) establish and operate a venture capital organization to minimize the use of equity financing.
• C) register with the local government commission that administers market leverage.
• D) earn a higher return on its investments than the interest rate it pays to acquire funds.