The proportion of debt in the overall capital of an organisation is also called as .................. .
The proportion of fixed-cost debt (debentures and long-term loans) in the overall capital structure of an organisation is called Financial Leverage (or Trading on Equity).
Choose your answer
The proportion of debt in the overall capital of an organisation is also called as .................. .
Answer and explanation
Correct answer B
The proportion of fixed-cost debt (debentures and long-term loans) in the overall capital structure of an organisation is called Financial Leverage (or Trading on Equity).
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