Which of the Following Statements Is Most Correct

question 22

Multiple Choice

Which of the following statements is most correct?

• A)firms with relatively low debt ratios have higher expected returns when the business is good.
• B)firms with relatively low debt ratios are exposed to risk of loss when the business is poor.
• C)firms with relatively high debt ratios have higher expected returns when the business is bad.
• D)firms with relatively high debt ratios have higher expected returns when the business is good.
• E)none of the above.

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Definitions:

Binding Contract

A binding contract is a legally enforceable agreement between two or more parties that is recognized by law, where each party has made promises or agreements that must be fulfilled.

Dispatched

refers to the act of sending off something or someone to a destination or for a purpose.

Master Offer

A principal or primary proposal made during negotiations, often outlining the main terms and conditions of a contract.

Valid Acceptance

In contract law, a manifestation of assent to the terms of an offer in a manner invited or required by the offer, constituting a binding legal agreement.