Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Leverage increases risk of financial distress. So if a company borrows money, shouldn’t the value of the firm go down due to the higher risk?

user-image
Question added by Sultan Alghamdi
Date Posted: 2016/02/14

Borrowing increases the risk of the institution ratio, that if the institution had been loss costs become big on themselves and could lead to change the strategy of the institution.

More Questions Like This