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If You Drink, Keep Alcohol Consumption to Moderate Levels-No More

question 14

Multiple Choice

If you drink, keep alcohol consumption to moderate levels-no more than ____ drinks per day for women and ____ per day for men.


Definitions:

Financial Leverage

Financial leverage is the use of borrowed money (debt) to amplify the potential returns from an investment or project.

Leverage

The use of borrowed funds to increase the potential return of an investment.

Optimal Capital Structure

The best mix of debt, preferred stock, and common equity that maximizes a company’s stock price while minimizing its cost of capital.

Stock Price

The current market price of a company's shares, as bought and sold by investors on stock exchanges.

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