choose the correct answer

Match the following terms with the descriptions below The chance that a company will fail because it defaults on its debt Financial risk An arbitrary value assigned to shares of capital stock that is approved by the state in which the business is incorporated Par Value A right of common stockholders that allows them to maintain their percentage ownership interest in the corporation when new shares of stock are issued Preemptive right A measure of a firm's ability to service its debt return on owners' equity ratio When a firm obtains (funds) cash in exchagDeb fancing for a liability A financing strategy that uses debt to increase the rate of return on owners' investment V[Choose Preemptive right Outstanding shares return on owners' equity ratio Financial risk authorized shares Times interest earned ratio Financial leverage Par Value Issued shares Debt financing legal capital equity financing The number of shares held outside the corporation The total number of shares the state will allow a corporation to sell A measure of the performance of the owner investment The portion of stockholders' equity required by the state to be retained for the protection of the corporation's creditors Choosel The number of shares which have been sold [Choose ] to stockholders at one point in time A means of raising cash or other assets in exchange for an ownership interest in a company equity financing