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If a higher ROE is desirable, why dont companies take on large amounts of debt? (Choose all that apply) Group of answer choices a.At some
If a higher ROE is desirable, why dont companies take on large amounts of debt? (Choose all that apply)
Group of answer choices
a.At some point the cost of the additional debt will be more than the assets purchased with that debt return to the company
b.Stockholders view debt-laden companies having inherently more risk
c.Highly leveraged companies are more difficult to manage
d.Highly leveraged companies have a longer cash conversion cycle
e.Large amounts of debt make companies more vulnerable in unstable economic times
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