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Question A8 Which one of the following statements correctly identifies the effect that an upwards revaluation of non-current assets would have on return on capital

Question A8

Which one of the following statements correctly identifies the effect that an upwards revaluation of non-current assets would have on return on capital employed (ROCE) and gearing?

Increase in both ROCE and gearing

Decrease in both ROCE and gearing

Increase in ROCE and decrease in gearing

Decrease in ROCE and increase in gearing

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