A firm whose debt to equity ratio ________ the industry average will ________ future financing flexibility by financing with equity at the next opportunity but doing so may sacrifice earnings per share.
A) is less than; maximize
B) exceeds; minimize
C) exceeds, maximize
D) None of the above.
Question 2
Which of the following statements about the personal property replacement cost endorsement used with the homeowners policy is (are) true?
I. The damaged or destroyed property must be repaired or replaced, no matter the size of the loss.
II. It is designed primarily for antiques and fine art.
A) I only
B) II only
C) both I and II
D) neither I nor II
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