1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
adell [148]
4 years ago
10

"The financial leverage multiplier is the ratio of​" ________. A. current assets to current liabilities B. total assets to total

debt C. current assets to common​ stockholders' equity D. total assets to common​ stockholders' equity
Business
1 answer:
Bond [772]4 years ago
4 0

Answer:

D. total assets to common​ stockholders' equity

Explanation:

The financial leverage multiplier (FLM) is defined as the ratio of the firm’s total assets to the shareholders’ equity.

Analyzing the answer choices provided, the one that better fits the description above is alternative D. total assets to common​ stockholders' equity

You might be interested in
Other things being equal, a nation with democratic political institutions, is clearly more attractive as a place in which to do
ankoles [38]
<span>This is a true statement. This gives the business the ability to perform its duties and tasks. In addition, having a market-based system that allows for the business to grow and expand helps those in charge meet their financial goals.</span>
3 0
3 years ago
The Tradeoff Theory suggests that​ ________. A. with higher costs of financial​ distress, it is optimal for a firm to choose hig
ratelena [41]

Answer:

The correct answer is D. The Tradeoff Theory suggests that a firm should choose a debt level where the tax savings from increasing leverage are just offset by the increased probability of incurring the costs of financial distress.

Explanation:

The trade-off theory of capital structure states that companies choose their leverage ratio to maximize benefits and minimize costs. The classic version of the hypothesis goes back to Kraus and Litzenberg, who observed a balance between the risk of loss of welfare from impending bankruptcy and the tax benefits of outside capital. In the trade-off theory, debt and equity financing are calculated in such a way that the present value of the tax shield is as large as possible and the present value of the costs of “financial distress” is possibly small.

8 0
3 years ago
Read 2 more answers
Which of the following items is not a part of planning?
Savatey [412]
E. Objectional plan is the answer
4 0
3 years ago
Read 2 more answers
Which of the following is the best analogy for a project plan?
sasho [114]
The answer is B. Blueprints for a house. Hope it help
6 0
3 years ago
Read 2 more answers
Joe sends for a MBA catalog from State University. According to the catalog, the MBA applications are evaluated on the basis of
irinina [24]

Answer:

The answer is: C) There is a valid contract

Explanation:

According to Appellate Court ruling in Steinberg v. Chicago Medical School;

The two parties (Joe and Sate University) entered a valid contract agreement upon receiving the $100 dollar application fee from Joe. State University´s catalog is considered to be the Offer part of this contract and the $100 application fee is considered the Consideration part of the contract.

7 0
4 years ago
Other questions:
  • The Austrian-company Wienerberger is the world's largest brickmaker. It had to use
    9·1 answer
  • On June 1, Royal Corp. began operating a service company with an initial cash investment by shareholders of $3,900,000. The comp
    7·1 answer
  • _____ may be daunting and perhaps risky, but the challenge of it grabs people in the gut and gets their juices flowing and creat
    11·1 answer
  • ________ is the stage of the new-product process that involves exposing actual products to prospective consumers under realistic
    7·1 answer
  • How people choose among the alternatives available to them is:?
    8·1 answer
  • In the horizontal bar graph presented as an example in your reading material, the horizontal scale at the bottom of the graph re
    14·1 answer
  • Consider Pacific Energy Company and U.S. Bluechips, Inc., both of which reported earnings of $966,000. Without new projects, bot
    14·1 answer
  • Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.50 per mile driven. Joyce has determined that if
    5·1 answer
  • Which of the following is an example of a broken job-role stereotype? A female forest ranger A female secretary A male architect
    8·1 answer
  • Since the international market is significantly larger than the domestic market, exporting is nearly always a way to increase a
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!