AFP
CTP · Question #862
(Topic 9) In terms of targeting a company's capital structure, when is it beneficial to assume a high level of financial risk?
The correct answer is A. When the economy is rapidly expanding. See the full explanation below for the reasoning.
Question
- (Topic 9)
In terms of targeting a company’s capital structure, when is it beneficial to assume a high level of financial risk?
Options
- AWhen the economy is rapidly expanding
- BWhen the economy is experiencing slow growth
- CWhen the company is experiencing growth
- DWhen the rate of return on investments is advantageous
How the community answered
(27 responses)- A70% (19)
- B7% (2)
- C4% (1)
- D19% (5)
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