Business Studies, asked by abhishekgurung09, 7 months ago

if the cost of debt is more than return on investment, what will be the financial leverage?

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Answered by samridhibhargav32

Explanation:

If a firm increases leverage by taking on more debt, the cost of debt capital increases (more debt increases the probability of financial distress) and the cost of equity capital increases (increased leverage causes Beta to increase).

Answered by Anonymous

Answer:

............Xd.............

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if the cost of debt is more than return on investment, what will be the financial leverage?​

Answers

if the cost of debt is more than return on investment, what will be the financial leverage?