If a firmrsquos borrowing rate exceeds its roa then roe, Financial Management

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If a firmrsquos borrowing rate exceeds its roa then roe

If a firm’s borrowing rate exceeds its ROA, then ROE will ______.

A. increase by an amount that depends on the equity/debt ratio.

B. increase by an amount that depends on the debt/equity ratio.

C. decline by an amount that depends on the equity/debt ratio.

D. decline by an amount that depends on the debt/equity ratio.

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Financial Management: If a firmrsquos borrowing rate exceeds its roa then roe

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Financial Management: If a firmrsquos borrowing rate exceeds its roa then roe

Reference No:- TGS02146911

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