ch10a - Question 1 (1 point) Clean Diapers delivery...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
(1 point) Clean Diapers delivery services purchased a delivery truck by making a $1,000 down payment and signing a note payable for the balance. What effect will this have on the firm's financial leverage? Student response: Student Response Answer Choices a. financial leverage will increase b. financial leverage will decrease c. financial leverage will remain unchanged d. the effect on financial leverage cannot be determined Score: 1 / 1 Question 2 (1 point) The dividend payout ratio is Student response: Student Response Answer Choices a. dividends / retained earnings b. dividends paid / dividends declared c. dividends / net income d. dividends / cash Score: 1 / 1 Question 3 (1 point) Which of the following is a TRUE statement? Student response: Student Response Answer Choices a. return on equity is always greater than return on assets b. if there is any debt in a company's capital structure, the financial leverage will be greater than one c. a company should avoid debt if it wants to improve its return on equity d. if a company has a negative return on assets, the use of financial leverage will improve the return on equity Score: 1 / 1 Question 4 (1 point)
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/29/2010 for the course ACCT 5031 taught by Professor Rusth during the Fall '09 term at University of Houston.

Page1 / 6

ch10a - Question 1 (1 point) Clean Diapers delivery...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online