Question: Borrowing is a double-edged sword. Do you agree? Explain. (a) No. Borrowing is a never a good idea. Having debt and interest payments only places

"Borrowing is a double-edged sword." Do you agree? Explain.

(a) No. Borrowing is a never a good idea. Having debt and interest payments only places a burden on the company to pay down the debt.Ultimately, borrowing can result in slower growth if earnings and cash flows are too low

(b) Yes. Borrowing is a double-edged sword because, while borrowed money can bring high returns to holders of common stock when investedproperly, it can be very costly if the returns from the use of borrowed money do not cover its cost. Ultimately, borrowing can result in slower growth if earnings and cash flows are too low.

(c) No. Borrowing is always a win-win situation because borrowing money can bring high returns to holders of common stock and when investedproperly, it can be a great way to increase profits. Profits increase because there is more cash to run the business.

(d) Yes. Borrowing is a double-edged sword because, while borrowed money can bring high returns to holders of common stock when investedproperly, it can be very costly if the returns from the use of borrowed money do not cover its cost. Ultimately, borrowing can result in bankruptcy if earnings and cash flows are too low.

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