Quick Tip For Accounting - Debt

 

Too much debt can make a company too "Risky". During economic downturns, these companies may not be able to repay their debts. On the other hand, little or no debt may not be a good thing either. If a company can borrow at 7% interest & 10% on its investment, borrowing will increase its overall rate of return.

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The Help

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Problem Dog

Something Borrowed