The 640-Acre Sections Created by the Land Ordinance of 1785

question 64

Multiple Choice

The 640-acre sections created by the Land Ordinance of 1785:

• A) would be given to settlers for free
• B) raised enough money to pay the national debt
• C) would be reserved for veterans of the Revolution
• D) would be sold by local banks
• E) were part of six-square-mile townships

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Definitions:

Financial Leverage

The use of borrowed funds with the intent to increase the return on equity.

EBIT-EPS Lines

Graphical representations that show the impact of financing choices, especially debt and equity, on a company's earnings per share (EPS) for various levels of earnings before interest and taxes (EBIT).

EPS

Earnings per share; a measure of a company's profitability calculated by dividing its net income by the number of outstanding shares.

EBIT

Earnings Before Interest and Taxes, a profitability measure for companies that doesn't include costs associated with taxes or interest.