If a Firm Increases Its Use of Financial Leverage,then What

question 19

Multiple Choice

If a firm increases its use of financial leverage,then what would we generally expect for the effect of that increased leverage to have on the dispersion of the firm's Net Income distribution?

• A) less dispersion
• B) no effect on dispersion
• C) greater dispersion
• D) there is not enough information to determine

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Definitions:

Blood Platelets

Tiny blood cells that play a critical role in clotting, helping to stop bleeding by clumping and forming plugs in blood vessel injuries.

Red Blood Cells

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Psychological Hardiness

A personality characteristic characterized by resilience and the ability to cope effectively with stress.