1. Financial leverage results from the firm's use of
a. debt financing
b. preferred stock financing
c. equity financing
d. common stock financing
2. Which part of the statement of cash flows shows recent activities related to issuing new shares of stock or new corporate bonds, in order to obtain the necessary funds to operate the firm?
a. statement of cash flows
b. operating activities
c. investment activities
d. proxy statement
e. financing activities