The Main Disadvantage of Financial Leverage Is That It

question 11

Multiple Choice

The main disadvantage of financial leverage is that it:

• A)increases the taxes of firms that use it.
• B)requires owners to invest even more of their own money.
• C)reduces the financial return to stockholders when times are bad.
• D)requires firms that use it to make higher dividend payments.

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Definitions:

Gene Coalesce

A concept in molecular genetics where different alleles at a gene locus in different lineages trace back to a single ancestral allele.

Allele Fixed

The situation in a population where all members carry the same allele of a particular gene, leading to the lack of genetic variation for that gene locus.

Population Size

The total number of individuals within a defined area at a given time.

Molecular Phylogenetic Studies

Investigations that use molecular data, such as DNA sequences, to infer the evolutionary relationships among species.