What is favourable financial leverage?

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Solution

Favourable financial leverage means when, ROI> Rate of Interest on debt.

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Similar questions

Financial leverage is called favourable if

Financial leverage is called favourable if

(a) Return on investment is lower than the cost of debt

(b) Rol is higher than the cost of debt

(d) If the degree of existing financial leverage is low

Financial leverage is called favourable if

(a) Return on investment is lower than the cost of debt

(b) ROI is higher than the cost of debt

(d) If the degree of existing financial leverage is low

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