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If a company increases its use of financial leverage to expand its asset base and is able to increase sales, then it increases its ROE:

If a company increases its use of financial leverage to expand its asset base and is able to increase sales, then it increases its ROE: a. Always. b. Only if the ratio of EBIT/assets exceeds its pretax cost of debt. c. Only if the market value of its equity exceeds the book value of its equity. d. Only if the market value of its debt exceeds the book value of its debt. e. None of the above

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