Multiple Choice
Which of the following statements is correct?
A) The use of debt in the capital structure results in tax benefits to the firm.
B) Debt is referred to as "financial leverage" because it magnifies returns to shareholders.
C) Debt management ratios evaluate whether a firm is financing its assets with a reasonable amount of debt versus equity financing.
D) All of these choices are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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