It Is Not Optimal to Borrow Any Further Funds When

question 63

Multiple Choice

It is not optimal to borrow any further funds when

• A) the average borrowing costs start to equal or exceed the ROA.
• B) the company's net profit margin falls below the average borrowing costs.
• C) the company's debt-to-equity ratio exceeds 50%.
• D) the average borrowing costs start to equal or exceed the ROE.

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Definitions:

Off-Site Training Classes

Training programs or educational sessions conducted away from the primary work location to facilitate focused learning environments.

Job Redesign

The process of restructuring a job to improve satisfaction, efficiency, and productivity by changing duties, responsibilities, or the work environment.

Group-Focused Techniques

Approaches or methods designed to improve the functioning, effectiveness, or cohesion of a group, often used in organizational development and team-building efforts.

Skills Training

The process of teaching specific abilities or techniques to improve performance in a particular area.