If a Firm Believes That It Will Have Sufficient Cash

question 5

Multiple Choice

If a firm believes that it will have sufficient cash flows to cover interest payments, it may consider using ____ debt and ____ equity, which implies a ____ degree of financial leverage.

• A) more; less; lower
• B) more; less; higher
• C) less; more; higher
• D) none of the above

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Definitions:

Visual Aids

Tools such as charts, diagrams, videos, and models used to enhance understanding, retention, or presentation of information.

Direct Close

An explicit type of closing wherein the salesperson asks the customer for a decision in a straight-forward, candid manner.

Sales Negotiations

The process of discussions between the buyer and seller aimed at reaching a mutually beneficial agreement on terms.

Cost and Quality

The relationship between the expense of a product or service and its level of excellence or worth, often a key consideration in consumer purchasing decisions.