Solved

The Concept of Leverage Is That

Question 159

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions