Question: Question 19 5 Points A company's financing comes from debt and equity and therefore diverts attention from liabilities that are part of operations. A leverage

 Question 19 5 Points A company's financing comes from debt and

Question 19 5 Points A company's financing comes from debt and equity and therefore diverts attention from liabilities that are part of operations. A leverage ratio is utilized whereby teh total assets of the firm are divided by shareholders' equity. Which of the following statements is the most accurate as it pertains to the use of Leverage? A Leverage provides the inability to control fewer assets than an owner would otherwise have the right to control. The leverage ratio cannot tell us precisely how many more assets an owner can control relative to their own equity capital. B Leverage provides the ability to control more assets than an owner would otherwise have the right to control. The leverage ratio tells us precisely how many more assets an owner can control relative to their own equity capital. Leverage provides the ability to control more assets than an owner would otherwise have the right to control. The leverage ratio tells us precisely the fewer amount of assets an owner can control relative to their own equity capital. Leverage provides the inability to control more assets than an owner would otherwise have the right to control. The leverage ratio is not a good measure of how many more assets an owner can control relative to their own equity capital

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