Post Utme Redeemers University 2017 Commerce Question 24

Practice objective / multiple choice question 24 from the 2017 Post Utme Redeemers University Commerce examination.

Post Utme Redeemers University 2017 Commerce Objective / Multiple Choice
Question 24 POST_UTME_REDEEMERS_UNIVERSITY • 2017 • COMMERCE • objective

A firm's financial leverage is the ratio of its total debt to its total equity. Which of the following is a correct formula for calculating financial leverage?

Answer Options

Correct Answer A. FL = (TD/TE)
B. FL = (TE/TD)
C. FL = (TD + TE)/TE
D. FL = (TD - TE)/TD
Correct Answer
A
Correct Option:
FL = (TD/TE)

About This Question

This is Post Utme Redeemers University 2017 Commerce Question 24. It is one of the objective questions from the 2017 Post Utme Redeemers University Commerce examination.

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