Question: Why D is not right. Which one is correct. Can u explain it in details A borrower with a speculative balance sheet is able to

Why D is not right. Which one is correct. Can u

Why D is not right. Which one is correct. Can u explain it in details

explain it in details A borrower with a speculative balance sheet is

A borrower with a speculative balance sheet is able to pay back interest with cash flows from investments but not the principal. The borrower must regularly rollover the principal. is able to pay back interest and principal with cash flows from investments. is able to pay back the principal with cash flows from investments but not the interest. They borrow on the belief that interest rates will fall.ue will be sufficient to refinance the debt. is unable to pay back interest and principal with cash flows from investments. They borrow on the belief that the appreciation of the asset's value will be sufficient to refinance the debt and only the appreciating asset value can keep the borrower afloat

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