Multiple Choice
If a firm's borrowing rate exceeds its ROA, then ROE will ________.
A) increase by an amount that depends on the equity/debt ratio.
B) increase by an amount that depends on the debt/equity ratio.
C) decline by an amount that depends on the equity/debt ratio.
D) decline by an amount that depends on the debt/equity ratio.
Correct Answer:
Verified
Correct Answer:
Verified
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