How Much of the Earth's Surface Is Covered by the Deep

question 21

Multiple Choice

How much of the Earth's surface is covered by the deep ocean basins?

• A) 15%
• B) 65%
• C) 30%
• D) 50%

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Definitions:

Financial Leverage

The use of borrowed money (debt) to finance the acquisition of assets, with the expectation that the income or capital gain from the new assets will exceed the cost of borrowing.

Par Bonds

Bonds that are issued and redeemed at their face value, or par value, which represents the nominal or dollar value printed on the bond.

Expected Perpetual EBIT

The forecasted continuous earnings before interest and taxes that a company expects to generate over an indefinite future period, assuming a steady state of operations.

Unlevered Cost of Capital

The cost of capital for a company that has no debt, representing its cost of equity.