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    Exam 19: Analysis and Interpretation of Financial Statements
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    If an Entity Is Able to Earn More on Borrowings
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If an Entity Is Able to Earn More on Borrowings

Question 34

Question 34

Multiple Choice

If an entity is able to earn more on borrowings than the cost of those borrowings the return on equity will:


A) vary.
B) increase.
C) decrease.
D) be unchanged.

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