Financial leverage refers to the goal of financial


1. The goal of financial management is to:

A. maximize net income.

B. maximize shareholder wealth.

C. maximize working capital.

D. minimize costs.

2. Financial Leverage refers to:

A. the liquidity of a firm’s assets.

B. the use of debt in a firm’s capital structure.

C. the amount of agency costs incurred by a firm.

D. how much a firm has contributed to political campaigns.

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Financial Management: Financial leverage refers to the goal of financial
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