In the Previous Example, What Is the Average Number of Students

question 55

Multiple Choice

In the previous example, what is the average number of students in the line?

• A) 2.25 students
• B) 5 students
• C) 15 students
• D) 20 students

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Definitions:

Leverage

The use of borrowed capital or debt to increase the potential return of an investment.

Debt Financing

Raising capital through the sale of bonds, bills, or notes to individuals or institutions, which must be repaid over time with interest.

Interest Tax Shield

The reduction in income taxes that results from the deductibility of interest payments.

Debt Financing

Raising capital through the borrowing of funds to be paid back at a later date, typically with interest.