Which of the Following Is an Effective Strategy for Describing

question 41

Multiple Choice

Which of the following is an effective strategy for describing?

• A) use of Roman numerals
• B) use of statistics
• C) use of metaphors
• D) use of chronology

---

Definitions:

Homemade Leverage

A strategy where investors adjust the amount of leverage in their own portfolios by borrowing or lending money to replicate corporate financial leverage.

Capital Structure

This term relates to the way a corporation finances its operations and growth by using different sources of funds, such as debt, equity, and hybrid securities.

Debt-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by shareholders' equity, indicating the extent to which debt is used to finance the company's assets.