Multiple Choice
Langley has a debt ratio of 0.3 and its competitor,Appleton,has a debt ratio equal to 0.7.Determine the statement below that is correct.
A) Appleton finances a smaller percentage of its assets with liabilities as compared to Langley.
B) Appleton's financial leverage is less than Langley's financial leverage.
C) Appleton's financial leverage is greater than Langley's financial leverage.
D) Langley has a higher risk from its financial leverage.
E) Higher financial leverage involves lower risk.
Correct Answer:
Verified
Correct Answer:
Verified
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