A firm that is able to attract additional capital because debt holders and equity holders will scramble to make additional funds available for it is likely earning
A) normal economic performance.
B) average accounting performance.
C) temporary advantage.
D) above normal economic performance.

Question

Quizplus · Accepted Answer

If debt and equity holders are scrambling to make additional funds available for a firm, it suggests that they have confidence in the firm's ability to generate high returns on their investments. This is indicative of above normal economic performance.

A Firm That Is Able to Attract Additional Capital Because