When is financial leverage favourable?

Open in App

Solution

When ROI is higher than cost of Debt

Suggest Corrections

Similar questions

Financial leverage is called favourable if

When is the financial leverage favorable?

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

Join BYJU'S Learning Program