32 If a company has much more borrowed capital than equity capital, which of the following statements
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32 If a company has much more borrowed capital than equity capital, which of the following statements is always true?
(a) If interest rates rise, the company will have to close
(b) The company will expand faster than a company with no borrowings
(c) The company is said to be highly geared
(d) The company is said to be low geared
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Related Book For
Accounting And Finance For Business
ISBN: 9780273773948
1st Edition
Authors: Geoff Black, Mahmoud Al-Kilani
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