janeszie27 janeszie27

17-06-2024
Business

Answered

Highly leveraged companies have which of the following characteristics?

A. Capital structure oriented towards equity
B. Potential for higher returns on investments
C. Lower risks associated with investments
D. Single ownership

Answer :

GinnyAnswer GinnyAnswer

17-06-2024

Final answer:

Highly leveraged companies have characteristics like a debt-oriented capital structure, potentially leading to higher returns but increased bankruptcy risks.

Explanation:

Highly leveraged companies have characteristics such as a capital structure oriented towards debt rather than equity. This means these companies rely heavily on borrowing money to finance their operations, which can lead to higher returns on investments for the owners but also increased risks of bankruptcy.

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