The key to managing leverage is to ensure the company's interest payments remain larger than earnings.

Name: The key to managing leverage is to ensure the company's interest payments remain larger than earnings.
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Question

Quizplus · Accepted Answer

The statement is false. The key to managing leverage is to ensure the company's interest payments remain smaller than earnings, so that the company can meet its debt obligations and avoid financial distress.

The Key to Managing Leverage Is to Ensure the Company's