________ results from the use of fixed-cost assets or funds to magnify returns to a firm's owners

A) Long-term debt
B) Equity
C) Leverage
D) Capital structure

C

Business

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Cassa Company is a price-taker and uses target pricing

Refer to the following information: Production volume 601,000 units per year Market price $32 per unit Desired operating income 16% of total assets Total assets $13,900,000 Variable cost per unit $20 per unit Fixed cost per year $5,400,000 per year With the current cost structure, Cassa cannot achieve its profit goals. It will have to reduce either the fixed costs or the variable costs. Assuming that fixed costs cannot be reduced, what are the target variable costs per year? Assume all units produced are sold. A) $11,608,000 B) $12,020,000 C) $5,400,000 D) $17,008,000

Business

What action returns a contract's parties to their position before the contract, including return of any deposit?

A) Cancellation B) Rescission C) Substitution D) Subordination

Business