Multiple Choice
If a firm has a positive tax rate, a positive ROA, and the interest rate on debt is the same as ROA, then ROA will be
A) greater than the ROE.
B) equal to the ROE.
C) less than the ROE.
D) greater than zero, but it is impossible to determine how ROA will compare to ROE.
E) negative in all cases.
Correct Answer:
Verified
Correct Answer:
Verified
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