Multiple Choice
When employing a strategy of financial leverage:
A) the cost of using borrowed funds should be less than the return generated by the borrowed funds
B) the interest rate on borrowed funds should be more than the rate of return on
Owners' equity
C) the goal of the corporation is to have zero liabilities
D) the main goal is the highest possible total income
Correct Answer:
Verified
Correct Answer:
Verified
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