When measuring the potential effect of leverage on a firm,what must we consider?
A) The stock of debt outstanding
B) The maturity of the debt outstanding
C) Any sinking fund payments
D) All of the above

Question

Quizplus · Accepted Answer

When measuring the potential effect of leverage on a firm, it is important to consider all of the above factors - the stock of debt outstanding, the maturity of the debt outstanding, and any sinking fund payments. This is because each of these factors can impact the firm's ability to meet its debt obligations and affect its financial stability. By considering all of these factors, analysts can better assess the level of risk associated with a company's use of leverage.

When Measuring the Potential Effect of Leverage on a Firm,what