Question
If the interest rate on debt is higher than the ROA, then by using debt a firm's ROE will _________. Why? rev: 11_18_2016_QC_CS-70478 decrease not
If the interest rate on debt is higher than the ROA, then by using debt a firm's ROE will _________. Why?
rev: 11_18_2016_QC_CS-70478
decrease
not change
change but in an indeterminable manner
increase
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Capital As Power
Authors: Jonathan Nitzan, Shimshon Bichler
1st Edition
0415496802, 978-0415496803
