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Homemade Leverage Is

Question 2

Multiple Choice
Homemade leverage is:
A) the incurrence of debt by a corporation in order to pay dividends to shareholders.
B) the exclusive use of debt to fund a corporate expansion project.
C) the use of personal borrowing to alter an individual's exposure to financial leverage.
D) best defined as an increase in a company's debt level.
E) the term used to describe the capital structure of a levered firm.

Homemade leverage is:


A) the incurrence of debt by a corporation in order to pay dividends to shareholders.
B) the exclusive use of debt to fund a corporate expansion project.
C) the use of personal borrowing to alter an individual's exposure to financial leverage.
D) best defined as an increase in a company's debt level.
E) the term used to describe the capital structure of a levered firm.

Correct Answer:

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