Which of the Following Statements Is Most Correct

question 31

Multiple Choice

Which of the following statements is most correct?

• A) Increasing financial leverage is one way to increase a firm's basic earning power (BEP).
• B) Firms with lower fixed costs tend to have greater operating leverage.
• C) The debt ratio which maximises EPS generally exceeds the debt ratio which maximises share price.
• D) Both a and b are correct.
• E) Both a and c are correct.

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Definitions:

Network Connection

A link between two or more devices that allows them to communicate or share data.

The ALU

The part of the computer that is responsible for performing mathematical calculations and logical operations, central to the CPU's function.

The CPU

The Central Processing Unit serves as the main element of a computer, executing the majority of the computer's processing tasks.

Actual Computation

The process of performing a mathematical calculation or data processing task in real-time or within a computing system.