1. Who will win the World Series? 1.Milwaukee Brewers 2.Boston Red Sox 3.New York Mets 4.New York Yankees 5.LA Dodgers 6.I don’t care

2. Financial Leverage 1.Increases returns 2.Decreases returns 3.All of the above 4.None of the above

3. Capital budgeting and financial leverage are 1.the same 2.related 3.the same as capital budgeting 4.none of the above

4. Company A: Sales $100, Operating Income = $10, no financial leverage Company B: Sales $100, Operating Income = $10, Debt Ratio = 50% Company A’s ____________ is greater than Company B’s 1.Operating performance 2.Net Income 3.Cash 4.1 and 2 5.2 and 3 6.1, 2, and3