An Increase in the Debt Ratio Will Generally Have No

question 25

Multiple Choice

An 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:

Sales

The activity or process of selling goods or services.

Experience

The knowledge or skill acquired by a period of practical exposure to activities in a particular field, often affecting one's performance or understanding.

Coefficient

A numerical or constant quantity placed before and multiplying the variable in an algebraic expression (e.g., in linear equations) or a measure of some type of correlation.

Dependent Variable

The outcome factor in an experiment or study, whose changes are influenced by the independent variable(s).