In Finance, the Leverage Ratio Refers To

question 89

Multiple Choice

In finance, the leverage ratio refers to:

• A) how a firm decides to borrow funds that it doesn't have.
• B) using borrowed money to pay for investments.
• C) ratio of assets it has relative to its equity.
• D) ratio of assets it has relative to debt.

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Definitions:

Slope

The measure of the steepness or incline of a line or surface, often expressed as a ratio of rise to run or as an angle in degrees.

Price

The cost in currency anticipated, called for, or dispensed in payment for a thing.

Quantity Supplied

The amount of a good that producers are willing and able to sell at a given price over a certain period of time.

Company Profits

The financial gain that a company achieves after all expenses, taxes, and costs have been subtracted from total revenue.