Under which of the following conditions could the overuse of financial - 4674

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Under which of the following conditions could the overuse of financial leverage be detrimental to the firm? 

A) Stable industry 

B) Cyclical demand for the firm's products. 

C) Upswing of business cycle. 

D) Low interest cost compared to return on assets 

 

Answer: B Difficulty: Medium Type: Application 

 

Chapter 6 Working Capital and the Financial Decision

 
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