If Company Earnings Reflect a Rate of Return Less Than

question 9

Multiple Choice

If company earnings reflect a rate of return less than the cost of debt,then more debt ________.

• A)will increase the percentage of earnings available for distribution to the equity owners
• B)will lower the percentage of earnings available for distribution to the debt owners
• C)will increase the percentage of dividends available for distribution to the equity owners
• D)will lower the percentage of earnings available for distribution to the equity owners

---

Definitions:

Lincoln's Thinking

Refers to the ideas, beliefs, and thought processes of Abraham Lincoln, the 16th president of the United States, particularly in regards to issues like slavery, nationhood, and democracy.

Postwar Policy

Policies and strategies implemented by a country or organization following the end of a major conflict, aimed at recovery, reconstruction, and addressing the underlying issues that led to the war.

Black Suffrage

The right of African Americans to vote, a key issue during the Reconstruction era, culminating in the 15th Amendment.

Radical Republicans

A faction within the Republican Party in the United States during and after the Civil War, known for their strong opposition to slavery and their efforts to secure rights for freed slaves.