Homemade Leverage Is

Multiple Choice

Homemade leverage is:

A) the incurrence of debt by a corporation in order to pay dividends to shareholders.
B) the exclusive use of debt to fund a corporate expansion project.
C) the borrowing or lending of money by individual shareholders as a means of adjusting their level of financial leverage.
D) best defined as an increase in a firm's debt-equity ratio.
E) the term used to describe the capital structure of a levered firm.