The value of tangible assets such as the firm's borrowing capacity and its physical plant are high because they can be easily leveraged to derive additional value.

Question

Quizplus · Accepted Answer

Tangible assets like borrowing capacity and physical plants are valuable, but they are not always easily leveraged for additional value due to factors like market conditions, depreciation, and liquidity constraints.

The Value of Tangible Assets Such as the Firm's Borrowing