Question: Explain in words the ROCE test for the advisability of adding leverage. That is, what is the test really telling us? When will it indicate

Explain in words the ROCE test for the advisability of adding leverage. That is, what is the test really telling us? When will it indicate a company is doing the wrong thing?

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7. Explain in words the ROCE test for the advisability of adding leverage. That is, what is the test really telling us? When will it indicate a company is doing the wrong thing?

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