Which of the Following Statements Is Most Correct

question 74

Multiple Choice

Which of the following statements is most correct?

• A)Increasing financial leverage is one way to increase a firm's basic earning power (BEP).
• B)Firms with lower fixed costs tend to have greater operating leverage.
• C)The debt ratio which maximizes EPS generally exceeds the debt ratio which maximizes share price.
• D)Both a and b are correct.
• E)Both a and c are correct.

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Definitions:

Outgoingness

A personality trait characterizing individuals who are friendly, sociable, and willing to engage in social interactions.

Political Attitudes

Individual's views and preferences about public policies, political parties, and candidates, as well as the institutions and processes of government.

Adoptive Parents

Individuals who have become parents through the legal process of adopting a child.

Extraversion

A personality trait characterized by outgoing, sociable, energetic, and lively behaviors.