The use of personal borrowing to change the overall amount of financial leverage to which an...
The use of personal borrowing to change the overall amount of financial leverage to which an individual is exposed is called:
Homework Answers
Ans homemade leverage
The use of personal borrowing to change the overall amount of financial leverage to which an individual is exposed is called homemade leverage.
Homemade leverage is used by individual investor to adjust the leverage of the company artificially. Differences in the tax rates between the corporation and the individual will disrupt the ability of the investors to construct the leverating the scenario.
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The use of personal borrowing to change the overall amount of
financial leverage to which an...
Homemade leverage is: Multiple Choice 0 the borrowing or lending of money by individual shareholders as...
Homemade leverage is: Multiple Choice 0 the borrowing or lending of money by individual shareholders as a means of adjusting their level of financial leverage. O the term used to describe the capital structure of a levered firm. 0 O the incurrence of debt by a corporation in order to pay dividends to shareholders. 0 best defined as an increase in a firm's debt-equity ratio. 0 the exclusive use of debt to fund a corporate expansion project.
Which of the following generally indicates a negative change? The asset turnover increases. The financial leverage...
Which of the following generally indicates a negative change? The asset turnover increases. The financial leverage decreases. The return on equity increases. The earnings per share increases.
Explain which factors determine operative leverage and financial leverage.
Explain which factors determine operative leverage and financial leverage.
Financial leverage is a measure of the amount of debt used in the capital structure of...
Financial leverage is a measure of the amount of debt used in the capital structure of the firm. While operating leverage primarily pertains to the left-hand side of the balance sheet (assets and associated costs), financial leverage deals with the right-hand side of the balance sheet (liabilities and net worth). Explain why two firms may have the same operating income but greatly different net incomes.
Increases, Decreases, or no change If you find $100, your personal assets _________ If The Mission...
Increases, Decreases, or no change If you find $100, your personal assets _________ If The Mission spends $5000 on tequila, company assets ________ If The Mission pays $5000 towards its Sales Tax Payable, Liabilities __________ and Equity _________ If Apple invests $5 million in R&D, assets will ________ and liabilities will ________ If The Mission spends $25k on new equipment, assets will ________ and liabilities will ________ If The Mission borrows $25k for new equipment, financial leverage will ________ and...
QUESTION 1 and is High financial leverage is caused by a firm having a high amount...
QUESTION 1 and is High financial leverage is caused by a firm having a high amount ✓ under control of the firm. Fixed operating costs Variable operating costs Interest Dividends Little Full QUESTION 2 High operating leverage is caused by a firm having a high amount of A and is under control of the firm.
Which Social Media Platform/Apps can be used to leverage your personal brand? How might you use t...
Which Social Media Platform/Apps can be used to leverage your personal brand? How might you use three different social media platforms/apps to add to your digital portfolio and enhance your web presence? please write it down over 300 words
What factors would cause a difference in the use of financial leverage for a utility company...
What factors would cause a difference in the use of financial leverage for a utility company and an automobile company? Also, please discuss the limitations of financial leverage.
Which of the following statements is FALSE about financial distress? A) Financial distress increases with leverage....
Which of the following statements is FALSE about financial distress? A) Financial distress increases with leverage. B) Financial distress is at its minimum when optimal leverage is achieved. C) Fire sale means that financially distressed firms sell their assets at a large discount. D) Financial distress is a type of costs of debt.
32.Use of Financial Leverage by Private Equity Funds Explain why private equity funds use a very...
32.Use of Financial Leverage by Private Equity Funds Explain why private equity funds use a very high degree of financial leverage and how this affects their risk and potential return on investment.
Homemade leverage is: Multiple Choice 0 the borrowing or lending of money by individual shareholders as a means of adjusting their level of financial leverage. O the term used to describe the capital structure of a levered firm. 0 O the incurrence of debt by a corporation in order to pay dividends to shareholders. 0 best defined as an increase in a firm's debt-equity ratio. 0 the exclusive use of debt to fund a corporate expansion project.
QUESTION 1 and is High financial leverage is caused by a firm having a high amount ✓ under control of the firm. Fixed operating costs Variable operating costs Interest Dividends Little Full QUESTION 2 High operating leverage is caused by a firm having a high amount of A and is under control of the firm.
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