A Company Has a Tax Rate of 40 $\begin{array} { l rr } & \text { Interest } &\mathrm{ROA} \\ &\text { rate } \\\end{array}$

Multiple Choice

A company has a tax rate of 40%. Leverage would be beneficial for the company for each of the following combinations of interest rates and ROA except
$\begin{array} { l rr } & \text { Interest } &\mathrm{ROA} \\ &\text { rate } \\\end{array}$
a) $\begin{array} { l rr } & 4 \% &&& 6 \% \\\end{array}$
b) $\begin{array} { l rr } & 6 \% &&& 6 \% \\\end{array}$
c) $\begin{array} { l rr } & 14 \% &&& 10 \% \\\end{array}$
d) $\begin{array} { l rr } & 16 \% &&& 10 \% \\\end{array}$

A) Choice A
B) Choice B
C) Choice C
D) Choice D