Question: Which of the following will lead to a decrease in financial leverage? A. Purchased equipment to be used in the business for $6,000 cash. B.
Which of the following will lead to a decrease in financial leverage?
A. Purchased equipment to be used in the business for $6,000 cash.
B. Received cash totaling $6,000 from investors in exchange for capital stock.
C. Paid $6,000 cash to shareholders for dividends.
D. Borrowed $6,000 from a bank to be repaid in two years.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
