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    Practical Financial Management
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    Exam 14: Capital Structure and Leverage
  5. Question
    Financial Leverage Increases a Firm's ROE and EPS Under Which
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Financial Leverage Increases a Firm's ROE and EPS Under Which

Question 18

Question 18

Multiple Choice

Financial leverage increases a firm's ROE and EPS under which of the following circumstances?


A) ROCE = cost of debt
B) ROCE > after tax cost of debt
C) ROCE < pretax cost of debt
D) ROCE = cost of equity

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