What Are the Likely Results as the Level of Gearing

question 41

Multiple Choice

What are the likely results as the level of gearing rises?

• A) Risk of financial distress decreases; cost of capital rises
• B) Risk of financial distress increases; cost of capital falls
• C) Risk of financial distress decreases; cost of capital falls
• D) Risk of financial distress increases; cost of capital rises

---

Definitions:

Correct Verb

Choosing the appropriate action word in a sentence that accurately matches the subject and tense.

Seismographers

Scientific instruments used to detect and record the strength, duration, and nature of earth movements, including earthquakes.

Modern Technology

The use of the latest methods, ideas, or tools to create products and solutions for contemporary issues and needs.

Correct Verb

entails the use of appropriate verb forms in grammar to match subject-verb agreement, tense, mood, and voice.