A company that borrows funds at 6% and then generates a return on those funds at 9%
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Question:
A company that borrows funds at 6% and then generates a return on those funds at 9% typically has:
a. Greater default risk
b. Favorable financial leverage
c. Higher return on equity
d. All ture
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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