A luxury cell phone maker has a high

A luxury cell phone maker has a high fixed-cost base and a lot of debt. Which stakeholder in the company would you rather be?

A. A bond holder in a booming company

B. A shareholder in a stagnant economy

C. A bond holder in a stagnant economy

D. A shareholder in a booming economy

Answer

Answer: Option D is correct
We would rather be a shareholder in a booming economy, (in a booming economy due to better future expectations we can expect an increase in share price)

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