- CFA Exams
- CFA Exam: Level I 2021
- Study Session 11. Corporate Finance (2)
- Reading 34. Measures of Leverage
- Subject 2. Financial Risk and Financial Leverage
CFA Practice Question
An unlevered firm is a company that has ______.
B. all debt in its capital structure
C. all equity in its capital structure
A. an equal amount of debt and equity in its capital structure
B. all debt in its capital structure
C. all equity in its capital structure
Correct Answer: C
User Contributed Comments 2
| User | Comment |
|---|---|
| sarath | unlevered firm = ZERO DEBT , FULL EQUITY |
| Inaganti6 | I thought it meant that there's no fulcrum and plank on the full crum |