ch10c - Question 1 (1 point) Suppose a company issues...

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Question 1    (1 point) Suppose a company issues common stock to retire its debt. Which of the following effects may occur?  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) Which of the following companies has the greatest financial leverage? A B C D Return on Assets 2% 2% 3% 3% Return on Equity 2% 5% 5% 6% Student response: Student Response
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Score: 1 / 1   Question 3    (1 point) If a company does not pay dividends to shareholders, it may be because  Student response: Student Response Score: 1 / 1   Question 4    (1 point) Which of the following would indicate a high degree of financial leverage?  Student response: Student Response Score: 1 / 1  
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Question 5    (1 point)
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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.

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ch10c - Question 1 (1 point) Suppose a company issues...

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