Question

"It takes money to make money" means A firm should use leverage intelligently. I firm should...

"It takes money to make money" means

A firm should use leverage intelligently.
I firm should issue the full limit of bonds.
A firm should not raise wages.
None of these answers is correct.
A firm should issue as much stock as allowed.
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Answer #1

Option A is the answer

As per the statement 'It takes money to make money' the company raises its investments through finances from outside.

To survive, the return on such investment must be higher than the interest payable on such investment. So the firm should use the leverage intelligently

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