Return on Assets is the most widely used technique for determining whether debt, stock, or a combination of debt and stock is the best alternative for raising capital to implement strategies.

Question

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Return on Assets (ROA) measures a company's profitability relative to its total assets, not its capital structure. The decision on whether to use debt, equity, or a combination is typically assessed using other metrics like the cost of capital, debt-to-equity ratio, or weighted average cost of capital (WACC).

Return on Assets Is the Most Widely Used Technique for Determining