Multiple Choice
When a company's ROE is greater than its ROA for a given time-period, it could be that
A) the company could borrow at an after-tax rate that was higher than the rate earned by investing in assets
B) the company could borrow at an after-tax rate that was less than the rate earned by investing in assets.
C) the company has no debt
D) the level of debt has no impact on the ROA
Correct Answer:
Verified
Correct Answer:
Verified
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