Interest Rate Expense per Share

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Interest rate expense per share -

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A. has consistently increased from 1977 to the present.

B. increased throughout the 1980s and decreased in the early 1990s.

C. has fluctuated widely from year to year.

D. has consistently decreased from 1977 to the present.

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Explanations

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A. B. C. D.

U.S. firms in the 1980s assumed increased debt financing and financial risk. As a result, interest rate expenses increased consistently during that period. This growth was reversed after the 1989-1990 recession because of a decrease in debt levels and interest rates.

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