Question: Why is the following statement true? Other things being the same, firms with relatively stable sales are able to carry relatively high debt ratios. Can

Why is the following statement true?

"Other things being the same, firms with relatively stable sales are able to carry relatively high debt ratios."

Can someone explain this statement please.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!