Under what economic conditions should a company avoid leverage? A) when the cost of borrowing goes up, and customers are NOT willing to pay higher prices B) during good economic conditions C) during poor economic conditions D) leverage should never be avoided no matter what the economic conditions
Under what economic conditions should a company avoid leverage? A) when the cost of borrowing goes up, and customers are NOT willing to pay higher prices B) during good economic conditions C) during poor economic conditions D) leverage should never be avoided no matter what the economic conditions
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Under what economic conditions should a company avoid leverage?
A) when the cost of borrowing goes up, and customers are NOT willing to pay higher
B) during good economic conditions
C) during poor economic conditions
D) leverage should never be avoided no matter what the economic conditions
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