The Achievement of an Increased Return on Common Shares by Paying

Multiple Choice

The achievement of an increased return on common shares by paying dividends on preferred shares or interest at a rate that is less than the rate of return earned with theassets invested in the corporation by the preferred shareholders or creditors is called:

A) Capital gain.
B) Financial leverage.
C) Contributed capital.
D) No par value.
E) Preemptive right.