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.
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.
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 8QTD
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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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