Question
If ROE exceeds the average costs of the firms liabilities, having higher DE ratios (greater leverage) increases profits for the firm. Why might lenders want
If ROE exceeds the average costs of the firms liabilities, having higher DE ratios (greater leverage) increases profits for the firm. Why might lenders want lower DE ratios while borrowers may want higher DE ratios?
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International Financial Management
Authors: Geert Bekaert, Robert Hodrick
3rd edition
1107111820, 110711182X, 978-1107111820
