Problema corporation can have so much financial leverage, Ask an Expert

Finance

Problem:

A corporation can have so much financial leverage that it finds it difficult to obtain additional credit. To reduce this problem a corporation may lease, rather than buy assets. This "off balance sheet financing" makes the corporation's financial position appear better to the outsider.

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Question: Is this an ethical recommendation for the financial manager to make? Explain.

Note: Please show how you came up with the solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91174641

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