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Company A is raising finds now to conduct operating activities that are expected to increase the company's next income next year. Instead of issuing stock
Company A is raising finds now to conduct operating activities that are expected to increase the company's next income next year. Instead of issuing stock for the funds, company A decides to issue bonds. How would company A's ROE be expected to change by the end of the next year?
A) ROE would always be higher no matter the fund is collected by bond or by stock.
B) ROE would be lower
C) ROE would stay the same
D) ROE would be higher
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