Home Depot, a home improvement supply store, issued $2 billion in debt in late 2016. What is the main difference between debt and other liabilities, like accounts payable?
1. Increased leverage allows companies to control more assets and increase their ROE. What’s bad about leverage? A. It reduces productivity, which can decrease overall ROE. B. Leverage-based profits are not cash-based and are ignored by finance. C. Leverage multiplies losses, too, as it increases a company’s risk D. There is nothing bad about leverage—using […]