Which of the Following Correctly Relates to Levels of Gearing

question 3

Multiple Choice

Which of the following correctly relates to levels of gearing, financial distress, and the cost of capital?

• A) At low gearing, distress risks are low but the cost of capital is high.
• B) At low gearing, distress risks are high and the cost of capital is high.
• C) At high gearing, distress risks are low but the cost of capital is high.
• D) At high gearing, distress risks are high and the cost of capital is high.

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Definitions:

Naturalist Intelligence

One of Howard Gardner's multiple intelligences, it refers to the ability to identify, classify, and manipulate elements of the environment, plants, and animals.

Howard Gardner

An American cognitive psychologist best known for his theory of multiple intelligences, which suggests people have different kinds of intelligences.

Fascinated

Intensely interested or attracted by someone or something.

Great Outdoors

A term that refers to natural outdoor environments, typically implying activities or experiences in nature.