Multiple Choice
If company earnings reflect a rate of return less than the cost of debt,then more debt ________.
A) will increase the percentage of earnings available for distribution to the equity owners
B) will lower the percentage of earnings available for distribution to the debt owners
C) will increase the percentage of dividends available for distribution to the equity owners
D) will lower the percentage of earnings available for distribution to the equity owners
Correct Answer:
Verified
Correct Answer:
Verified
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