The Return on Investment (ROI) of a company ranges between 10-12% for the past three years. To
finance its future fixed capital needs, it has the following options for borrowing debt:
Option 'A': Rate of interest 9%; Option 'B': Rate of interest 13%
Which source of debt. Option A' or 'Option B', is better? Give reason is support of year answer. Also
state the concept being used in taking the decision.
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Answer:
rate of interest 9%
Explanation: becouse this interest is not effect more in the business by the ROI
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