Using more debt lowers profits and thus the ROA. Why doesnt debt have the same negative effect

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Using more debt lowers profits and thus the ROA. Why doesn’t debt have the same negative effect on the ROE?

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Fundamentals Of Financial Management

ISBN: 9780357517574

16th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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Question Posted: Feb 27, 2024 03:11 AM

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Using more debt lowers profits and thus the ROA. Why doesnt debt have the same negative effect

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Debt can have a different effect on Return on Equity ROE compared to Return on Assets ROA due to the ...View the full answer

Fundamentals Of Financial Management

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