The Montreal Protocol

question 4

Multiple Choice

The Montreal Protocol

• A)created the Intergovernmental Panel on Climate Change.
• B)established a framework to address acid precipitation.
• C)aims to reduce and eliminate all ozone depleting substances.
• D)is ineffective because so few countries have ratified it.
• E)only addresses CFCs.

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Definitions:

Debt

Money that is owed or due to be paid, typically resulting from borrowing funds to be repaid with interest.

Financial Leverage

Financial leverage is the use of borrowed money (debt) to amplify the potential returns from an investment or project.

Leverage

The use of borrowed funds to increase the potential return of an investment.

Optimal Capital Structure

The best mix of debt, preferred stock, and common equity that maximizes a company’s stock price while minimizing its cost of capital.