HighLev Incorporated Borrows Heavily and Uses the Leverage to Boost

question 33

Multiple Choice

HighLev Incorporated borrows heavily and uses the leverage to boost its return on equity to 30% this year,nearly 10% higher than the industry average.However,HighLev's stock price decreases relative to its industry counterparts.How is this possible?

• A) Markets are inefficient and fail to recognize the benefits of leverage.
• B) The increased debt resulted in interest payments that made HighLev's operating income drop even though return on equity increased.
• C) Shareholders are not interested in return on equity.
• D) The high levels of debt increased the riskiness of HighLev relative to its competitors.

Address the initiative used to increase gender diversity and inclusion in the workplace.

Distinguish between compensatory and punitive damages in legal disputes.

Understand the concept of distributive justice and its relevance to employee perceptions.

Understand the concept and development of gender roles and stereotypes.

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Definitions:

Diathesis-Stress Model

A psychological theory that explains behavior as a predispositional vulnerability together with stress from life experiences.

Psychological Disorder

A condition characterized by significant disturbance in an individual's cognition, emotion regulation, or behavior, which reflects a dysfunction in psychological, biological, or developmental processes.

Preexisting Conditions

Health issues or conditions that were present before obtaining health insurance or before a particular coverage starts.

Genetic Characteristics

The attributes and features that are inherited from one's parents through genes.