A High Debt Ratio Can Be Favorable Because Higher Leverage

question 41

True/False

A high debt ratio can be favorable because higher leverage may result in a higher return on equity.

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Definitions:

Conclusions and Recommendations

The final section of a document or presentation that summarizes findings and suggests actions.

Appendix

A section at the end of a book or document that contains supplementary information.

Line of Reasoning

A logical sequence of statements or arguments that lead from a premise to a conclusion.

Balance

The state of having equal distribution of weight, elements, or interests.