Why would a lender offer unsecured loans

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Question: 1. Why would a lender offer unsecured loans when it could demand collateral?

2. How can a small-business owner or corporate manager use financial leverage to improve the firm's profits and return on owners' equity?

3. In what circumstances might a large corporation sell stock rather than bonds to obtain long-term financing? In what circumstances would it sell bonds rather than stock?

Reference no: EM131463627

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