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Company A's basic earning power (BEP) exceeds its cost of debt financing (rd). If it increases its debt ratio, then which of the following statements

Company A's basic earning power (BEP) exceeds its cost of debt financing (rd). If it increases its debt ratio, then which of the following statements is CORRECT? a. Company A will increase its return on assets (ROA). b. Company A will increase its higher times interest earned (TIE) ratio. c. Company A will increase its return on equity (ROE). d. Company A will increase its Basic Earning Power (BEP).

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