Choose option a,b,c,d,e for the following: Question 6 - A higher financial risk: a. Arises when the debt – equity ratio is reduced. b. Can avert financial distress. c. Will cause the shareholders to expect lesser return. d. Indicates an inefficient use of fixed cost assets. e. Indicates an inefficient use of fixed cost funds.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
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Choose option a,b,c,d,e for the following:

Question 6 -

A higher financial risk:

a. Arises when the debt – equity ratio is reduced.

b. Can avert financial distress.

c. Will cause the shareholders to expect lesser return.

d. Indicates an inefficient use of fixed cost assets.

e. Indicates an inefficient use of fixed cost funds.

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