A company has favorable financial leverage when
it uses borrowed funds to earn a higher rate of return than the rate of interest paid on the borrowed money.
it issues debt rather than capital stock.
earnings per share increase each year.
too much is paid out in cash for interest.
none of the above
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
(Save $1 )
One time Pay
(Save $5 )
Billed Monthly
*First month only
You can see the logs in the Dashboard.
