Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company whose rate of return on investments is higher than the interest rate on its debt is said to have a) unfavorable financial leverage.
A company whose rate of return on investments is higher than the interest rate on its debt is said to have
a) unfavorable financial leverage.
b) a sub-optimal capital structure.
c) favorable financial leverage.
d) negative financial leverage.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started