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If return on assets (ROA) exceeds the interest rate on new debt then, all else equal, which of the following would improve a firm's return
If return on assets (ROA) exceeds the interest rate on new debt then, all else equal, which of the following would improve a firm's return on equity? [Assume taxes = 0%]
- A. Increase debt, relative to assets.
- B. Increase assets, relative to sales.
- C. Increase equity, relative to assets.
- D. Increase equity, relative to debt.
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Investing In Financial Research A Decision Making System For Better Results
Authors: Cheryl Strauss Einhorn, Tony Blair
1st Edition
1501732757, 9781501732751
