The Higher the Degree of Financial Leverage Employed by a Firm,the

question 44

Multiple Choice

The higher the degree of financial leverage employed by a firm,the:

• A)higher the probability that the firm will encounter financial distress.
• B)lower the amount of debt incurred.
• C)less debt a firm has per dollar of total assets.
• D)higher the number of outstanding shares of stock.
• E)lower the balance in accounts payable.

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Definitions:

Behavior

The way in which one acts or conducts oneself, especially towards others.

Internalize

The process of incorporating the values, attitudes, or norms of others into one's own self-concept.

Identify

means to recognize or establish as being a particular person or thing; to determine the identity of someone or something.

Gender

A social construct related to behavioral, cultural, or psychological traits typically associated with one's sex.