Multiple Choice
The use of debt in the firm's capital structure will increase ROE if the firm:
A) has more debt than equity.
B) pays less in taxes than in interest.
C) earns a higher return than the rate paid on debt.
D) has a times interest earned ratio greater than 1.0.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q57: XYZ Corp.has an operating profit margin of
Q58: A firm with no leases has a
Q59: To calculate which of these measures do
Q60: Which one of the following would be
Q61: If ROC is less than a firm's
Q63: High levels of liquidity may indicate:<br>A) low
Q64: The asset turnover ratio and inventory turnover
Q65: When will ROE equal ROC?<br>A) Whenever the
Q66: Return on assets and return on equity
Q67: Other things equal,an increase in average accounts