Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In the context of financial structure, which of the following statements is not true? as long as the return generated from borrowed funds exceeds the
In the context of financial structure, which of the following statements is not true? as long as the return generated from borrowed funds exceeds the rate of interest payable, the ordinary shareholders will benefit. the gearing ratio considers the significance of a company's debt relative to equity high levels of gearing may be perceived as risky, because of the company's commitment to pay a given sum of interest, regardless of how much profit is generated the interest cover ratio equals the rate of interest payable on a loan Which of the following would definitely improve both gross profit as reported in the Income Statement and gross profit margin (assuming cost price per unit stays the same)? Selling more units at a higher selling price per unit. Selling more units at a lower selling price per unit Selling fewer units at a higher selling price. Selling fewer units at a lower selling price
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started