Which Statement Is Correct About Financial Leverage

question 48

Multiple Choice

Which statement is correct about financial leverage?

• A)Leverage can increase an investor's returns but also increases the risk of loss.
• B)Leverage can decrease an investor's returns and also decrease the risk of loss.
• C)Leverage decreases the payments that a company makes on an ongoing basis.
• D)Leverage decreases the debt level relative to a company's equity base.

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Sexually Transmitted Infections; diseases that are primarily spread through sexual contact, including viruses, bacteria, and parasites.

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A tissue located on the chest that contains the mammary glands, capable of producing milk.

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The act or process of moving from a higher to a lower position.