Question
When considering a firms capital structure, a financial manager must: make sure that business conditions are good when changing the level of debt. balance the
When considering a firms capital structure, a financial manager must:
| make sure that business conditions are good when changing the level of debt. | ||
| balance the benefits of increased expected returns with increased financial risk. | ||
| be extra cautious during periods when the rate of return on assets is greater than the interest rate on debt. | ||
| seek to reduce debt at all costs. |
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Technology And Finance Challenges For Financial Markets Business Strategies And Policy Makers
Authors: Morten Balling, Frank Lierman, Andy Mullineux
1st Edition
041529827X, 978-0415298278
