Which of the Following Would Cause a Well-Run Company to Become

Multiple Choice

Which of the following would cause a well-run company to become highly leveraged?

A) when the money that the company can earn investing the money that it borrows is equal to the cost of borrowing
B) when the money that the company can earn investing the money that it borrows is significantly less than the cost of borrowing
C) when the money that the company can earn investing the money that it borrows is significantly greater than the cost of borrowing
D) when the money that the company can earn investing the money that it borrows is equal to more than half of the cost of borrowing