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To Employ Leverage,you Should Borrow Funds to Make an Investment

question 47

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To employ leverage,you should borrow funds to make an investment with the goal of earning a rate of return in excess of the after-tax costs of borrowing.


Definitions:

Discharges

The release or dismissal from a duty, obligation, or liability.

Employer

An individual or organization that hires and pays people to work for them under agreed-upon terms.

Adequately

In a manner that is sufficient or satisfactory for a particular purpose.

Performance

In contract law, it refers to the act of doing what is required by a contract.

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