The Higher the Capital Structure Leverage Ratio, the _____ Is

Multiple Choice

The higher the capital structure leverage ratio, the _____ is the proportion of financing that common shareholders provide and the _____ is the proportion that creditors and preferred shareholders provide.Thus, the _____ the capital structure leverage ratio, the _____ is financial leverage.

A) higher; lower; higher; higher
B) lower; higher; higher; higher
C) higher; lower; higher; lower
D) lower; higher; higher; lower
E) lower; higher; lower; lower