Multiple Choice
It is unattractive to borrow any further funds when:
A) the average borrowing costs start to equal or exceed the ROE.
B) the average borrowing costs start to equal or exceed the ROA.
C) the company's net profit margin falls below the average borrowing costs.
D) the company's debt-to-equity ratio exceeds 50%.
Correct Answer:
Verified
Correct Answer:
Verified
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