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QUESTION 7 Your analysis of the Sauron Co. shows an RCA of 5.6%. Upon further examination, you find that it is paying 7.4% interest on its long-term bonds. Which conclusion below is appropriate for the Sauron Co.? A a. Sauron's use of leverage is not enhancing its shareholders' return this year. A b. Sauron is wisely using leverage to enhance its shareholders' return this year. A c. Comparing RCA to interest rates is not helpful in evaluating the use of leverage in a company. A d. None of the above