____ Is an Example of an Ownership Investment

question 104

Multiple Choice

____ is an example of an ownership investment.

• A)Treasury Bills
• B)Mortgage-backed bonds
• C)Common corporate stock
• D)Corporate bonds

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Definitions:

Equity Multiplier

A financial leverage ratio that measures the proportion of a company's assets that are financed by shareholder's equity.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations, calculated as earnings before interest and taxes (EBIT) divided by interest expenses.

Interest Expense

The cost incurred by an entity for borrowed funds, reflected in its income statement.

Tax Rate

The percentage at which an individual or corporation is taxed by the government.