The Less Fixed-Cost Debt (Financial Leverage) a Firm Uses, the Greater

question 53

True/False

The less fixed-cost debt (financial leverage) a firm uses, the greater will be its risk and return.

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Definitions:

Facebook Drones

Unmanned aerial vehicles developed by Facebook (now Meta) aimed at providing internet access to remote areas by flying at high altitudes.

Wingspan

The measure of distance from one wingtip of an animal or aircraft to the other; in business, it can metaphorically refer to the reach or spread of a company's influence.

Altitudes

The height of an object or point in relation to sea level or ground level.

GEO

Short for Geostationary Earth Orbit, a circular orbit 35,786 kilometers above the Earth's equator where a satellite's orbital period matches the Earth's rotation, appearing stationary to an observer on Earth.