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The presence of debt and/or preferred stock in a firm's financial structure means the firm is using financial leverage. True False Two key components of

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The presence of debt and/or preferred stock in a firm's financial structure means the firm is using financial leverage. True False Two key components of a prudent capital structure are the debt maturity composition and the debt to equity composition. True False Financial structure includes long- and short-term sources of funds. True False Capital structure is the mix of the long-term sources of funds used by the firm. True False Above the EBIT-EPS indifference point, a more heavily levered financial plan will produce greater EPS. True False

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