Question: Should the owner borrow as much as possible if a property has positive leverage? Yes, because a higher leverage increases the return. No , because
Should the owner borrow as much as possible ifa property has positive leverage?
Yes, because a higher leverage increases the return.
No because the positive leverage means excessive debt and must be stopped or reduced.
Yes, because a higher leverage also helps reduce the risk.
No because higher leverage may increase bankruptcy risk and can not be increased indefinitely.
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