As the Debt-Equity Ratio Decreases When Debt Is Not Risk

question 35

Multiple Choice

As the debt-equity ratio decreases when debt is not risk free:

• A) debtholders demand a higher expected return.
• B) debtholders demand a lower expected return.
• C) the expected return on equity increases.
• D)the expected return on assets increases.

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Definitions:

Occupational Burnout

A state of physical, emotional, and mental exhaustion caused by prolonged stress and dissatisfaction in a job environment, often leading to decreased performance.

Self-Care

The practice of taking action to preserve or improve one's own health, well-being, and happiness, especially during periods of stress.

Poor Sleep Hygiene

Practices that are conducive to sleeping poorly, such as irregular sleep schedules, use of electronics before bed, and consumption of caffeine late in the day.

Negative Self-Talk

The habit of generating critical or pessimistic thoughts about oneself that can affect one's self-esteem and mental health.