The Divorce Rate in Second Marriages Is About _____ Higher

question 108

Multiple Choice

The divorce rate in second marriages is about _____ higher if it involves stepchildren than if it does not.

• A) 5%
• B) 15%
• C) 45%
• D) 25%

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Definitions:

Optimal Capital Structure

The most favorable mix of debt and equity financing that minimizes the company's cost of capital and maximizes its value.

EPS

Earnings Per Share, a financial metric used to indicate the profitability of a company on a per-share basis.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Financial Leverage

The use of borrowed funds with the goal to increase the potential return on investment.