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CTP · Question #423

(Topic 5) The use of debt to finance a company is called:

The correct answer is D. financial leverage. See the full explanation below for the reasoning.

Question

  • (Topic 5)

The use of debt to finance a company is called:

Options

  • Aborrowing cost.
  • Brisk-adjusted cost.
  • Ccost of debt.
  • Dfinancial leverage.

How the community answered

(65 responses)
  • A
    3% (2)
  • B
    12% (8)
  • C
    6% (4)
  • D
    78% (51)

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