Which One of the Following Statements Is Correct

question 3

Multiple Choice

Which one of the following statements is correct?

• A) The lower the level of a company's debt, the higher the company's leverage.
• B) The lower the level of a company's debt, the lower the company's equity multiplier.
• C) The lower the level of a company's debt, the higher the company's equity multiplier.
• D) The tax benefit from using debt financing reduces a company's risk.

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Definitions:

Trustworthiness

The quality of being reliable, truthful, and credible in personal or professional contexts.

Two-Way Communication

A reciprocal process of exchanging information and understanding between two or more parties, emphasizing feedback and interaction.

Telegraph

A historical communication system that transmitted messages over long distances using coded signals.

Social Media

Digital mediums and tools that allow individuals to produce, distribute content, and engage in online social networks.