If a Firm Believes That It Will Have Sufficient Cash

question 5

Multiple Choice

If a firm believes that it will have sufficient cash flows to cover interest payments, it may consider using ____ debt and ____ equity, which implies a ____ degree of financial leverage.

• A) more; less; lower
• B) more; less; higher
• C) less; more; higher
• D) none of the above

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Definitions:

Implicit Leadership Theories

Are preconceived notions about the attributes associated with leaders that reflect the structure and content of “cognitive categories” used to distinguish leaders from nonleaders.

Attributes

Qualities or features regarded as a characteristic or inherent part of someone or something.

Granting

The act of giving or assigning something, such as rights, privileges, or resources, usually from a position of authority.

Identity

The qualities, beliefs, personality, looks, and expressions that make a person or group distinctive.