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A firm increases its debt-to-equity ratio from 1.5 to 1.75. The increase is beneficial to shareholders if ROA is positive The increase is detrimental to
A firm increases its debt-to-equity ratio from 1.5 to 1.75.
- The increase is beneficial to shareholders if ROA is positive
- The increase is detrimental to shareholders if ROA is negative
- Has no effect on return on equity or shareholders
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
5th Edition
1260013987, 9781260013986
