borrowing

Why would firms with high ROAs not keep leveraging up their firm by borrowing and investing the funds in profitable assets?

Assignment There is one question.(200 – 250 words). The intuition behind the benefits of financial leverage is that a firm can borrow funds that bear a certain interest rate but invest those funds in assets that generate returns in excess of that rate. Why would firms with high ROAs not keep leveraging up their firm […]

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