The Higher the Capital Structure Leverage Ratio, the _____ Is

question 161

Multiple Choice

The higher the capital structure leverage ratio, the _____ is the proportion of financing that common shareholders provide and the _____ is the proportion that creditors and preferred shareholders provide.Thus, the _____ the capital structure leverage ratio, the _____ is financial leverage.

• A)higher; lower; higher; higher
• B)lower; higher; higher; higher
• C)higher; lower; higher; lower
• D)lower; higher; higher; lower
• E)lower; higher; lower; lower

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Definitions:

Manipulating

Involves exerting shrewd or devious influence especially for one’s own advantage.

Great Leader Theory

A leadership theory that suggests certain individuals possess inherent traits or characteristics that make them exceptionally effective leaders.

Zeitgeist Theory

A theory suggesting that the dominant set of ideals, beliefs, and mores of a society reflects its spirit or intellectual and cultural climate at any given time.

Trait

A distinguishing characteristic or quality, particularly of one's personal nature.