The Achievement of an Increased Return on Common Shares by Paying

question 42

Multiple Choice

The achievement of an increased return on common shares by paying dividends on preferred shares or interest at a rate that is less than the rate of return earned with the assets invested in the corporation by the preferred shareholders or creditors is called

• A)Financial leverage
• B)Contributed capital
• C)No par value
• D)Preemptive right
• E)Capital gain