ROE is affected by the firms financial leverage. An increase in the debt-to-equity ratio will raise its
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ROE is affected by the firm’s financial leverage. An increase in the debt-to-equity ratio will raise its ROE if the interest rate on the debt is less than the firm’s return on assets. p-696
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Related Book For 
ISE Investments
ISBN: 9781266085963
13th International Edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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