A Company That Earns a Rate of Return on Its

question 23

Multiple Choice

A company that earns a rate of return on its investments lower than the interest rate on its debt is said to have

• A)unfavourable financial leverage.
• B)a sub-optimal capital structure.
• C)favourable financial leverage.
• D)negative financial leverage.

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Definitions:

Top-Level Domain

The suffix, often of three letters (such as .com or .edu), in the domain name that indicates the kind of organization the host is.

URL

Uniform Resource Locator, a reference or address used to access resources on the internet.

Packet

A packet in networking refers to a formatted unit of data carried by a packet-switched network.

Bytes

A unit of digital information storage, typically consisting of eight bits, used to represent a single character of data.