Total leverage is a measure of total risk: it measures how earnings pershare will change with a change in sales.TrueFalseInvestors buy preferred shares as oppoised to common shares becausethey expect to profit from a price rise in the value of the shares.O TrueFalse

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Total leverage is a measure of total risk: it measures how earnings per share will change with a change in sales. True O False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Total leverage is a measure of total risk: it measures how earnings per
share will change with a change in sales.
True
False
Investors buy preferred shares as oppoised to common shares because
they expect to profit from a price rise in the value of the shares.
O True
False

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