Home » Finance for Everyone: Debt » Which of the following statements are true concerning borrowing decisions? Which of the following statements are true concerning borrowing decisions? 1. Question 1 Which of the following statements are true concerning borrowing decisions? 1 point Borrowing decisions are based on rational calculations and transactional analysis Borrowing decisions are based on rational calculations, transactional analysis, as well as psychological and social factors Borrowing decisions can magnify returns but not losses Most people in developed countries have more equity than debt When interest rates are at historic lows, it is a good idea to borrow Other Questions Of This Category Considering “Indifference analysis”, which indicates the level of operating income (or earnings before interest and tax, EBIT) where EPS (earnings per share) are equal whether the firm uses debt or…Which of the following is true about government debt?If a firm has a debt to equity ratio of 50%, its overall debt ratio must be:Access to borrow more is not a “free lunch”. This statement implicates which of the following?What are some of the signs suggesting that developed countries have borrowed too much money?Which of the following factors influence how much debt a firm should take on?What are some of the ways governments who have borrowed too much can resolve this problem?Assume a firm earns net income of $10,000 with total assets of $200,000 - half of which is debt - and has 20,000 shares outstanding. Based on this information, its EPS (earnings per share), ROA…Except for one, all of the following institutions enable other governments to borrow more at a lower cost than they would have on their own:Miller and Modigliani’s nobel prize winning framework provides all of the following insights, except:Governments borrow because:Which of the following factors almost always explain most market crashes?When a firm is determining its target debt ratio, which of the following is paramount?Which of the following statements applies to student loans?Information like salaries, interest from savings accounts, and dividends from investments, can be found on which document?
