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If a Firm Has a Positive Tax Rate,a Positive Operating

Question 23

Multiple Choice

If a firm has a positive tax rate,a positive operating ROA,and the interest rate on debt is the same as the operating ROA,then operating ROA will be _________.


A) greater than zero but it is impossible to determine how operating ROA will compare to ROE
B) equal to ROE
C) greater than ROE
D) less than ROE

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