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    Practical Financial Management Study Set 1
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    Exam 14: Capital Structure and Leverage
  5. Question
    When the ROCE Exceeds the After-Tax Cost of Debt, More
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When the ROCE Exceeds the After-Tax Cost of Debt, More

Question 79

Question 79

True/False

When the ROCE exceeds the after-tax cost of debt, more leverage makes ROE and EPS worse.

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