In financial leverage, why not simply increase leverage as long as the firm is able to earn

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In financial leverage, why not simply increase leverage as long as the firm is able to earn more on the employment of the funds thus provided than they cost? Would not earnings per share increase?

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Fundamentals Of Financial Management

ISBN: 9780273713630

13th Revised Edition

Authors: James Van Horne, John Wachowicz

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Question Posted: Dec 07, 2015 05:48 AM

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In financial leverage, why not simply increase leverage as long as the firm is able to earn

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While earnings per share will increase as long as the firm is able to earn more ...View the full answer

Fundamentals Of Financial Management

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