Bobby Building owns an office building free/clear for $1MM. It earns him a 8% return every year. He is refinacing the building at 10% interest and using the funds to purchase a 2nd building with similar return as the existing building. This is an example of; a) positive debt:income ratio b) positive leverage c) negative leverage d) negative amortization

Answer rating: 100% (QA)

This scenario exemplifies b positive leverage Bobby is leveraging ... View the full answer