If economic conditions were expected to be favorable, an investor would likely prefer a firm with a low degree of leverage.
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The use of financial leverage must consider both risk and maximizing profit.
A. 对
B. 错
The closer a firm is to its break-even point, the lower the degree of operating leverage it will be.
A. 对
B. 错
Financial leverage primarily affects the asset side of the balance sheet.
A. 对
B. 错
Operating leverage primarily affects the asset side of the balance sheet, while financial leverage affects the liabilities and net worth side of the balance sheet.
A. 对
B. 错