Why don’t firms increase their leverage as much as possible? Check ALL that apply

Why don’t firms increase their leverage as much as possible? Check ALL that apply
a)Having too much debt increases the interest rate firms have to pay on their loans
Why don’t firms increase their leverage as much as possible? Check ALL that apply
a)Having too much debt increases the interest rate firms have to pay on their loans

b)It will increase their risk of bankruptcy

c)It will increase their tax bill

d?It will slow down the collection of receivables
b)It will increase their risk of bankruptcy

c)It will increase their tax bill

d?It will slow down the collection of receivables

 
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