Trading on the Equity Leverage)refers to the

question 2

Multiple Choice

Trading on the equity leverage) refers to the

• A)Amount of working capital
• B)Amount of capital provided by owners
• C)Use of borrowed money to increase the return to owners
• D)Number of times interest is earned

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Definitions:

Index of Leading Indicators

A composite index designed to predict the future movements of the economy based on various economic indicators.

New Building Permits

Legal authorizations required from governmental entities before the construction of new buildings can commence.

Unemployment Rate

The ratio of individuals without jobs in the labor force who are in search of employment.

Structurally Unemployed

Individuals who are unemployed due to shifts in the economy that create a mismatch between their skills and the demands of the current job market.