Question: Question 2 2 ( 1 point ) Which of the following combinations of situations is worse for common shareholders? cost of borrowing exceeds the return
Question point
Which of the following combinations of situations is worse for common shareholders?
cost of borrowing exceeds the return on assets; debt ratio is high.
cost of borrowing exceeds the return on assets; equity ratio is high.
return on assets exceeds the cost of borrowing; debt ratio is high.
return on assets exceeds the cost of borrowing; equity ratio is high
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