Which of the Following Statements Correctly Describes How Leasing Companies

question 101

Multiple Choice

Which of the following statements correctly describes how leasing companies' debt-dominated capital structure impact their cost of borrowing?

• A) The portion of debt does not affect the cost of capital
• B) Large portion of debt reduced the cost of capital
• C) More information is needed to describe the impact on the cost of capital
• D) Large portion of debt increases the cost of capital

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Definitions:

Justice

A principle of fairness or moral rightness that dictates the equitable treatment of all individuals within a society.

Accountability

The duty of a person or entity to justify their actions, take accountability for those actions, and reveal the outcomes in a clear way.

Ethical Principle

Fundamental guidelines that help determine the rightness or wrongness of actions within a professional or societal context.

Fidelity

The degree of accuracy and exactness with which something is copied or reproduced, or loyalty and faithfulness to commitments and obligations.