A retailer has no debt (short term or long term).Its financial leverage _____.
D)cannot be determined based on the information given
A retailer's assets are very small relative to its liabilities.The retailer has _____.
A)low fixed assets
B)low profit margin
C)high financial leverage
D)high net worth
A firm with a conservative financial leverage ratio has _____.
A)a lot of debt relative to assets
B)little debt relative to assets
D)high return on net worth
A danger to a retailer with a very high financial leverage is _____.
A)the reduction in inventory valuation
B)the reduction in return on net worth
C)that high debt service must be paid
D)high variable cost levels