Successful Use of Financial Leverage May​

question 30

Multiple Choice

Successful use of financial leverage may​
1) increase the firm's earnings per share
2) decrease the firm's earnings per share
3) increase investors' return on their funds
4) decrease investors' return on their funds

• A)​1 and 3
• B)​1 and 4
• C)​2 and 3
• D)​2 and 4

Understand how corporate policies are formulated and the board’s role in such decisions.

Comprehend the legal consequences of directorial and officer breaches of duty, including derivative suits.

Recognize the statutory and regulatory framework governing corporate governance, including the Sarbanes-Oxley Act.

Appreciate the cultural aspects of corporate management accountability.

---

Definitions:

Iterative Method

An approach in computing where a sequence of operations is repeatedly applied to gradually approach a desired result.

Power of X

Power of X typically describes a mathematical operation where a number (X) is multiplied by itself a certain number of times.

Divide and Conquer

An algorithm strategy that breaks a problem into smaller parts, solves each part individually, and then combines the solutions.

Recursive Method

A method in programming that calls itself in order to solve a problem by breaking it down into smaller sub-problems.