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