I think the examiners are simply saying increase the returns on the money ChocCo invests. Eg imagine the US Co costs $1,000m and produces a profit of $100m. If ChocCo spends $1000m of its own money on the US Co, the return it gets on that money is 100/1000 = 10%. However, if ChocCo spends only $500m of its own money on the US Co and funds the other $500m by issuing debt, then (ignoring factors such as the interest on the debt), it gets a return of 10/500 = 20% on the money it invests. Hope that helps Gresham
