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    Financial Accounting Information for Decisions Study Set 2
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    Exam 10: Reporting and Analyzing Long-Term Liabilities
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    Return on Equity Increases When the Expected Rate of Return
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Return on Equity Increases When the Expected Rate of Return

Question 39

Question 39

True/False

Return on equity increases when the expected rate of return from new assets is higher than the rate of interest expense on the debt financing.

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