Increase in the Debt Ratio Will Generally Have No Effect

question 61

Multiple Choice

increase in the debt ratio will generally have no effect on which of these items?

• A)Business risk.
• B)Total risk.
• C)Financial risk.
• D)Market risk.
• E)The firm's beta.

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Definitions:

Productivity Of Labor

A measure of economic performance that calculates the output of goods and services produced per unit of labor input.

Human Capital

The combined abilities, expertise, or other non-physical resources that individuals possess, which can generate economic benefits for the individuals themselves, their employers, or the society.

Rate Of Investment

The percentage of return achieved on an investment over a given period of time.

Technological Change

Innovations in technology leading to the creation of new products, improvement in production processes, or increased efficiency in services or operations.