Question
Which of the following will lead to an increase in financial leverage? A. Purchase of machinery to be used in the business for $72,000 with
Which of the following will lead to an increase in financial leverage?
A. Purchase of machinery to be used in the business for $72,000 with cash.
B. Receive cash totaling $28,000 from a new shareholder in exchange for common stock.
C. Borrow $67,000 from a bank to be repaid in ten years.
D. Repay a note payable of $34,000.
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Financial Forensics Body Of Knowledge
Authors: Darrell D. Dorrell, Gregory A. Gadawski
1st Edition
0470880856, 978-0470880852
