Dana Dairy Products had a ________ degree of financial leverage ...

[s.tung]

Dana Dairy Products had a ________ degree of financial leverage than the industry standard, resulting in ________. (See Table 3.2)
 
  A) lower; lower return on total assets
  B) lower; lower return on equity
  C) higher; higher return on equity
  D) higher; higher return on total assets

Question 2

Weights that use accounting values to measure the proportion of each type of capital in a firm's financial structure are called book value weights.
 
  Indicate whether the statement is true or false

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Answer to Question 1

B

Answer to Question 2

TRUE