Samson,Inc.reported the Following Information for the Year

question 31

Multiple Choice

Samson,Inc.reported the following information for the year:

How much was the unit cost per service? (Round your answer to the nearest cent. )

• A)$5.71
• B)$3.71
• C)$2.00
• D)$7.71

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Definitions:

Financial Leverage

Financial leverage is the use of borrowed money (debt) to amplify the potential returns from an investment or project.

Leverage

The use of borrowed funds to increase the potential return of an investment.

Optimal Capital Structure

The best mix of debt, preferred stock, and common equity that maximizes a company’s stock price while minimizing its cost of capital.

Stock Price

The current market price of a company's shares, as bought and sold by investors on stock exchanges.