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

2. Financial Leverage • Increases returns • Decreases returns • All of the above • None of the above

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

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