A Firm That Admits to Having "Financial Slack" Has

question 28

Multiple Choice

A firm that admits to having "financial slack" has:

• A)Uncommitted liquid assets or unused borrowing power
• B)A low ROE but high leverage
• C)More than sufficient cash to pay dividends
• D)Grown at a rate less than its sustainable growth

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Definitions:

Diaphragm

A muscular partition separating the thorax from the abdomen, playing a major role in breathing.

Pancreas

An organ with vital roles in both the endocrine and digestive systems, secreting insulin and digestive enzymes.

Spleen

An organ located under the ribcage and above the stomach that filters blood, stores red blood cells and platelets, and produces white blood cells.

Gallbladder

A small organ located under the liver, responsible for storing and concentrating bile.