14. Which of the following is a charge for using debt over time? a. Interest b. Levenge c. Bankuptoy d. Dividends e. Bond 15. Which of the following refers to a company's ability to eam more on bonowed finds than the cost of related interest? a. Covenants b. Financial levenge a. Tumover d. Liquidity a. Factorins 16. When a company issues bonds to the genenl public, it becomes subject to the rules and regulations of the: a IASB. b. EIII? c. PCAOB. d. SBC. c. ACPN 17. Which of the following is true of debt financing? 2. Debt is fice of cost. b. Debt does not fintancial leverage. c. It is mundatory for a company to have debt. d. Debt brings in risk c. Debt always leads to bankruptoy. 18. Which of the following is true of financial levernge? a. It refers to an orgenization's ability to increase is reported net income by uing equity fintencing b. It refen to an organization's ability to increase its reported net income by uxing dabe financing: c. It refers to an organization's ability to collect receivables fuster than prying its does d. A highly leversed finm means that the company has a high dividend payout natio. c. A highly leveraged company means that most of its funds come from retained earings