A Firm with a DOL of 2, and No Preferred

question 73

Multiple Choice

A firm with a DOL of 2, and no preferred stock, and no long-term debt will have a DCL of:

• A) 0
• B) 2
• C) 1
• D) -1

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Definitions:

Acid

A substance that donates hydrogen ions (H+) to solutions and can accept a pair of valence electrons to form a bond.

Metals

Elements that are typically hard, shiny, malleable, fusible, and conductive, often used for electrical wiring, building materials, and tools.

Alkaline

A type of basic, as opposed to acidic, substance; in batteries, it refers to a type using alkaline electrolytes such as potassium hydroxide, known for long life and steady power output.

P-Type

A type of semiconductor material that is doped with elements which create excess positive charge carriers or holes.