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    Managerial Accounting Study Set 23
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    Exam 16: Financial Statement Analysis
  5. Question
    If a Company's Return on Assets Is Substantially Lower Than
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If a Company's Return on Assets Is Substantially Lower Than

Question 55

Question 55

True/False

If a company's return on assets is substantially lower than its cost of borrowing, then the common stockholders would normally want the company to have a relatively high debt/equity ratio.

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