What is the concept of using debt to make a return known as

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Reference no: EM132759218

Problem 1: What's the concept of using debt to make a return known as?

A. Debt reliance

B. Financial liquidity

C. Debt coverage

D. Financial leverage

Problem 2: Because the WACC varies with the use of funds rather than the source of funds, some firms evaluate new projects by sorting projects into risk classes, and add or subtract adjustment factors from the WACC. This approach is called the

A. DuPont approach.

B. divisional approach.

C. pure play approach.

D. subjective approach.

Reference no: EM132759218

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