The values of all posts in a company's balance sheet stays the same throughout some following periods.

All income posts and costs posts also remain the same throughout the periods except from the interest costs.

The tax rate remains the same.

How will the return on equity and return on total capital be affected if the interest costs increases from the first period to the second period?

Answer rating: 100% (QA)

Return on Equity ROE and Return on Total Capital ROTC are two important measures of a companys finan... View the full answer