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
C. Debt is easily available
D. If the degree of existing financial leverage is low
Answer:B
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 C. Debt is easily available D. If the degree of existing financial leverage is low