A retailer has no debt (short term or long term).Its financial leverage _____.
A)equals 0
B)equals 1
C)equals infinity
D)cannot be determined based on the information given

Name: A retailer has no debt (short term or long term).Its financial leverage _____. A)equals 0 B)equals 1 C)equals infinity D)cannot be determined based on the information given
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Question

Quizplus · Accepted Answer

Financial leverage equals 1 when a company has no debt, as it is calculated as total assets divided by equity, and with no debt, assets equal equity.

A Retailer Has No Debt (Short Term or Long Term)