The Greater the Proportion of Debt Financing Compared with Equity

question 57

Multiple Choice

The greater the proportion of debt financing compared with equity financing for a company the:

• A) lower the future earnings prospects for the company.
• B) greater the ability of the company to meet its interest payments.
• C) greater the degree of financial risk for the company.
• D) lower the expected earnings per share.

---

Definitions:

Slang

Slang consists of informal words and phrases that are usually understood within a particular social group or culture, often reflecting attitudes and values of that group.

Language Equivalency

The concept that different languages can communicate the same ideas or concepts, though the expressions and structures may differ.

Grammatical Differences

The variation in rules and structure between languages or within different forms of a single language.

Syntactic Differences

Variations in the way sentences are structured or organized among different languages, dialects, or linguistic styles.