Which of the Following Statements Is Most Correct

question 74

Multiple Choice

Which of the following statements is most correct?

• A)Increasing financial leverage is one way to increase a firm's basic earning power (BEP).
• B)Firms with lower fixed costs tend to have greater operating leverage.
• C)The debt ratio which maximizes EPS generally exceeds the debt ratio which maximizes share price.
• D)Both a and b are correct.
• E)Both a and c are correct.

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Definitions:

Individual Differences

Variations among individuals in their psychological traits, behaviors, and processes.

Functional Units

Components or parts of a system, device, or organism that perform specific roles or functions within the larger structure.

Heredity

The genetic transmission of characteristics from parents to offspring.

Chromosomes

Structures within cells that contain DNA and carry genetic information necessary for reproduction, growth, and maintenance.