A leveraged company is best described as one that has a small portion of its capitalization represented by:
A)common stock
B)preferred stock
C)debentures
D)convertible bonds

Name: A leveraged company is best described as one that has a small portion of its capitalization represented by: A)common stock B)preferred stock C)debentures D)convertible bonds
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Question

Quizplus · Accepted Answer

common stock. Leverage refers to the existence of securities that are senior to common stock. There can be debt leverage and equity leverage.

A Leveraged Company Is Best Described as One That Has