Who will win the World Series?

Milw

aukee Brewers

Boston Red Sox

New York Mets

New York Yankees

LA Dodgers

I don’t c

are

17% 17% 17%17%17%17%1. Milwaukee Brewers2. Boston Red Sox3. New York Mets4. New York Yankees5. LA Dodgers6. I don’t care

Financial Leverage

Incre

ases returns

Decrease

s return

s

All of t

he above

None of the above

25% 25%25%25%1. Increases returns2. Decreases returns3. All of the above4. None of the above

Capital budgeting and financial leverage are

the sa

me

related

the sa

me as capita

l bud...

none of the above

25% 25%25%25%1. the same2. related3. the same as capital

budgeting4. none of the above

Company A: Sales $100, Operating Income = $10, no financial leverageCompany B: Sales $100, Operating Income = $10, Debt Ratio = 50%Company A’s ____________ is greater than Company B’s

Operating perfo

rman

ce

Net Inco

me Cash

1 and 2

2 and 3

1, 2, a

nd3

17% 17% 17%17%17%17%1. Operating

performance2. Net Income3. Cash4. 1 and 25. 2 and 36. 1, 2, and3