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

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If a firms borrowing rate exceeds its roa then roe will

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

a. Decline by an amount that depends on the equity/debt ratio.

b. Decline by an amount that depends on the debt/equity ratio.

c.Increase by an amount that depends on the equity/debt ratio.

d. Increase by an amount that depends on the debt/equity ratio.

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