If the interest rate on debt is lower than ROA, then a firm will __________ by increasing the use of debt in the capital structure.
A) increase the ROE
B) not change the ROE
C) decrease the ROE
D) change the ROE in an indeterminable manner

Name: If the interest rate on debt is lower than ROA, then a firm will __________ by increasing the use of debt in the capital structure. A) increase the ROE B) not change the ROE C) decrease the ROE D) change the ROE in an indeterminable manner
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Question

Quizplus · Accepted Answer

The Answer is A

If the Interest Rate on Debt Is Lower Than ROA