Changing the mix of financing between the amount of debt versus the amount of equity will affect the company's return on assets.

Name: Changing the mix of financing between the amount of debt versus the amount of equity will affect the company's return on assets.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The return on assets (ROA) is determined by how efficiently a company uses its assets to generate earnings, not by how it finances those assets (debt vs. equity).

Changing the Mix of Financing Between the Amount of Debt