Trading on the equity financial leverage)is likely to be a good financial strategy for stockholders of companies having
A)Cyclical high and low amounts of reported earnings
B)Steady amounts of reported earnings
C)Volatile fluctuation in reported earnings over short periods of time
D)Steadily declining amounts of reported earnings

Question

Quizplus · Accepted Answer

Steady amounts of reported earnings provide a predictable environment where the benefits of financial leverage can be maximized without the risk of excessive volatility that could lead to financial distress.

Trading on the Equity Financial Leverage)is Likely to Be a Good