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Knubley Incorporated is currently using 30% debt and 70% equity for its capital structure. What would happen if this firm used less leverage (debt) and
Knubley Incorporated is currently using 30% debt and 70% equity for its capital structure. What would happen if this firm used less leverage (debt) and made un for it with equity capital? (The total dollar value of the capital does not change.) (a.) ROA would increase a little, and ROE would decrease. b. ROA would decrease a little, and ROE would increase. c. ROA would stay exactly the same, and ROE would decrease. d. Both ROA and ROE would decrease. e. Both ROA and ROE would increase
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