Multiple Choice
The concept of leverage is that
A) it is appropriate to borrow if the return on the assets is greater than the cost of the financing.
B) it is appropriate to borrow as long as the lender approves the loan.
C) it is unfavorable to borrow funds rather than raise the capital from stockholders.
D) a high debt-to-equity ratio is favorable.
Correct Answer:

Verified
Correct Answer:
Verified
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