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25 March, 04:48

A management that wanted to increase the financial leverage of its firm would: raise additional capital by selling fixed interest rate long-term bonds. raise additional capital by selling common stock. use excess cash to purchase preferred stock for the treasury. try to increase its ROI by increasing asset turnover.

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  1. 25 March, 04:59
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    Answer: Raise additional capital by selling fixed Interest rate long term bonds

    Explanation:

    A firm can finance it's operations through equity or debts, the art of a firm financing it's operations through debts like bonds etc it's refered to as financial leverage.

    A firm cannot increase it's financial leverage by selling common stock, neither through buying stock from his cash and financial leverage does relate with asset turnover.
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