Multiple Choice
Assume now that the company believes that if it adopts a restricted policy,its sales will fall by 15% and EBIT will fall by 10%,but its total assets turnover,debt ratio,interest rate,and tax rate will all remain the same.In this situation,what's the difference between the projected ROEs under the restricted and relaxed policies?
A) 2.24%
B) 1.50%
C) 1.00%
D) 0.50%
Correct Answer:
Verified
Correct Answer:
Verified
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