If the Return on Investment (ROI) exceeds the rate of interest on debt, it is ............ financial leverage.

CS Executive · Financial and Strategic Management · PYQS · December 2024
If the Return on Investment (ROI) exceeds the rate of interest on debt, it is ............ financial leverage.
(A) Negative
(B) Adverse
(C) Unfavorable
(D) Favorable

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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