Diane Chambers buys an apartment building for $2 million. Which one of the following exhibits the highest degree of financial leverage?
A) $500,000 down payment and mortgage of $1,500,000
B) $250,000 down payment and loan of $1,750,000
C) $150,000 down payment and loan of $1,850,000
D) $100,000 down payment and loan of $1,900,000
E) $1 million down payment and loan of $1 million
Correct Answer:
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