If a firm is using financial/leverage successfully what would be the impact of doubling operating earning?

The returns on equity will more than double
The return on equity will decline by half
The return on equity will double
The return on equity will increase, but not double
The returns on equity will more than double  

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ABC Ltd. has a Current Ratio of 1.5: 1 and Net Current Assets of Rs. 5,00,000. What are the Current Assets:
A. Rs. 5,00,000
B. Rs. 10,00,000
C. Rs. 15,00,000
D. Rs. 25,00,000
Dividend Payout Ratio is:
A. C
B. DPS รƒโ€ข EPS
C. Pref. Dividend รƒโ€ข PAT
D. Pref. Dividend รƒโ€ข Equity Dividend
The money markets deal with:
A. Securities with a life of more than one year
B. short-term securities
C. Securities such as common stock
D. None of these
Traditional approach confines finance function only to ______ funds.
A. Raising
B. Mobilizing
C. Utilizing
D. Financing
Short “โ€œ term interest rates, in a normal economy, are generally ___________ than long “โ€œ term rates:
A. Higher
B. The same
C. Lower
D. None of the above
Insufficient working capital results in:
A. Block of cash
B. Loosing interests
C. Lack of production
D. Lack of smooth flow of production
Financial Management is mainly concerned with _______:
A. arrangement of funds
B. all aspects of acquiring and utilizing financial resources for firm’s activities
C. efficient Management of every business
D. profit maximization

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