Question
Since borrowing money can increase ROE if the company can use the money borrowed to earn a greater operating return than the cost of the
Since borrowing money can increase ROE if the company can use the money borrowed to earn a greater operating return than the cost of the additional debt, why doesnt a company use 100% financial leverage (entirely nonowner financed and no shareholders' equity)?
When might a increase short-term gain but at the cost of long-term performance?
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Management And Cost Accounting
Authors: Charles T. Horngren, George Foster, Srikant M. Datar
3rd Edition
0273687514, 978-0273687511
