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If the Firm's Rate of Return on Its Assets Is

Question 2

Multiple Choice

If the firm's rate of return on its assets is _____ than the cost of borrowing, then the owners' rate of return on equity will _____ as the firm uses _____ debt


A) greater, increase, less
B) greater, decrease, more
C) greater, increase, more
D) less, increase, more

Correct Answer:

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