Can anyone explain this problem please, thank you.

If a higher ROE is desirable, what is one reason companies don't take on large amounts of debt? Highly leveraged companies are more difficult to manage Highly leveraged companies have a longer cash conversion cycle Investors prefer companies to have low levels of debt At some point the cost of the additional debt will be more than the return on assets purchased with that debt If a higher ROE is desirable, what is one reason companies don't take on large amounts of debt? Highly leveraged companies are more difficult to manage Highly leveraged companies have a longer cash conversion cycle Investors prefer companies to have low levels of debt At some point the cost of the additional debt will be more than the return on assets purchased with that debt