Which of the Following Statements Is Correct

question 109

Multiple Choice

Which of the following statements is correct?

• A)The use of debt in the capital structure results in tax benefits to the firm.
• B)Debt is referred to as "financial leverage" because it magnifies returns to shareholders.
• C)Debt management ratios evaluate whether a firm is financing its assets with a reasonable amount of debt versus equity financing.
• D)All of these statements are correct.

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Definitions:

Legalization

The process of making an act, substance, or behavior legally permissible under the law.

Regulate Industry

The act of governing or controlling industries through laws, rules, and regulations to ensure safety, quality, and fairness.

Traditional Stalking

Engaging in a pattern of unwanted, continuous surveillance and contact by one individual towards another, in a manner perceived as intrusive and threatening.

Cyberstalking

The use of the internet or other electronic means to stalk or harass an individual, group, or organization, often involving threats or intimidating behavior.