A company whose rate of return on investments is higher than the interest rate on its debt is said to have
A) unfavorable financial leverage.
B) a sub-optimal capital structure.
C) favorable financial leverage.
D) negative financial leverage.
Correct Answer:
Verified
Q1: Merrimac Brewing company's total assets equal $18
Q3: The Times Interest Earned Ratio measures a
Q4: Which of the following should be excluded
Q5: Tremont Inc.'s Total Assets =$25 million. The
Q6: Fibonacci Property Management's balance sheet shows total
Q7: Cornucopia's liabilities and equity are shown below:
Q8: Financial structure includes long-term and short-term sources
Q9: Merrimac Brewing company's total assets equal $18
Q10: Suppose we calculate a times interest earned
Q11: A firm's capital structure consists of which
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents