Business Studies, asked by manyaaa272, 1 year ago

The more debt the firm issues the higher the interest rate it must pay

Answers

Answered by ashakantasharma

Yes the higher the debt companies takes higher will be the responsibility for timely and regular payments of agreed interest on the borrowed debt.

There is an agreed rate of interest the company must honour on the debts it borrowed regardless of whether the company is generating profits or losses

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