Assume a Portion of a Firm's Long-Term Funds Includes Either

question 37

Multiple Choice

Assume a portion of a firm's long-term funds includes either debt or preferred stock.Which of the following statements is correct?

• A) The firm must possess operating leverage,which means that a change in net income will result in a greater percentage change in earnings before interest and taxes (EBIT).
• B) The firm has financial leverage,which means that a change in sales will result in a greater percentage change in EBIT.
• C) The firm has financial leverage,which means that a change in EBIT will result in a greater percentage change in earnings per share (EPS).
• D) The firm doesn't have leverage,because leverage is created through the use of common equity financing only.
• E) None of the above is a correct answer.

Appreciate the impact of administrative agencies on law-making and governance in the United States.

Understand the basic structure and lifecycle of Java applets.

Comprehend the hierarchical arrangement of classes in Java's GUI components.

Recognize the differences between applets and GUI applications.

---

Definitions:

Head of Femur

The rounded, proximal end of the femur (thigh bone) that articulates with the acetabulum of the pelvis, forming the hip joint.

Anterior Cruciate Ligament

A key ligament located inside the knee joint that connects the thigh bone to the shin bone, crucial for stabilizing the knee.

Lateral Collateral Ligament

A ligament located on the lateral (outer) side of the knee, providing stability to the outer knee joint.