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  2. Topic
    Business
  3. Study Set
    Corporate Finance
  4. Exam
    Exam 2: Introduction to Financial Statement Analysis
  5. Question
    If Alex Corporation Takes Out a Bank Loan to Purchase
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If Alex Corporation Takes Out a Bank Loan to Purchase

Question 15

Question 15

Multiple Choice

If Alex Corporation takes out a bank loan to purchase a machine used in production and everything else stays the same,its equity multiplier will ________,and its ROE will ________.


A) increase;increase
B) decrease;decrease
C) increase;decrease
D) decrease;increase

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