Figure 20-3 ​

question 166

Multiple Choice

Figure 20-3
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-If the U.S. government determines that the cost of feeding an urban family of four is $7,500 per year, then the official poverty line for a family of that type is

• A)$7,500.
• B)$15,000.
• C)$22,500.
• D)$30,000.

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Definitions:

Leverage

The use of borrowed capital or financial instruments to increase the potential return of an investment or project.

Debt Financing

The raising of funds through borrowing, either by issuing bonds or taking out loans, which creates a liability to be repaid over time.

Return on Common Stockholders' Equity

A measure of profitability that indicates how much profit a company generates with the money shareholders have invested, expressed as a percentage.

Asset Turnover

A profitability ratio that measures how effectively a business is using its assets to generate sales, computed as sales divided by average total assets (excluding long-term investments).