Which of the following is a key determinant of financial leverage?
A) Level of debt.
B) Technology.
C) Labor costs.
D) Amount of fixed assets used by the firm.
E) Variable cost of goods sold.

Question

Quizplus · Accepted Answer

Financial leverage is determined by the level of debt a firm has. The more debt a firm has, the higher its financial leverage will be. Other factors such as technology, labor costs, fixed assets, and variable costs can impact a firm's profitability, but they do not directly affect its financial leverage.

Which of the Following Is a Key Determinant of Financial