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The benets hoped for in terms of nancial leverage is that a rm's borrowed funds at a stated interest rate can be invested in assets

The benets hoped for in terms of nancial leverage is that a rm's borrowed funds at a stated interest rate can be invested in assets that will generate higher returns than the interest due on the borrowed funds.

Why would rms with high Return On Assets (ROA) refrain from leveraging up their rm by borrowing and investing the funds in protable assets?

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