Assuming that a firms ROA exceeds its interest costs, why would it not be prudent to use

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Assuming that a firm’s ROA exceeds its interest costs, why would it not be prudent to use vast amounts of debt to boost ROE and EPS?

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Investments Analysis And Management

ISBN: 9781118975589

13th Edition

Authors: Charles P. Jones, Gerald R. Jensen

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Question Posted: Dec 27, 2023 05:15 AM

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Assuming that a firms ROA exceeds its interest costs, why would it not be prudent to use

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Although higher ROE leads to higher EPS two factors determine stock ...View the full answer

Investments Analysis And Management

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