Which One of the Following Statements Concerning Financial Leverage Is

question 22

Multiple Choice

Which one of the following statements concerning financial leverage is correct?

• A)Financial leverage increases profits and decreases losses.
• B)Financial leverage has no effect on a firm's return on equity.
• C)Financial leverage refers to the use of common stock.
• D)Financial leverage magnifies both profits and losses.
• E)Increasing financial leverage will always decrease the earnings per share.

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Definitions:

Fifth-generation Languages

Fifth-generation languages are programming languages that focus on solving problems using constraints given to the system, utilizing logic programming.

English-based Commands

Instructions or directives written in the English language, used in computing or programming environments for operations.

System Development Life Cycle (SDLC)

A process used to develop information systems; it consists of the following six steps: problem and opportunity identification, analysis, design, development, testing and installation, and maintenance and evaluation.

Programming

The process of translating a task into a series of commands a computer will use to perform that task.