Question: Alpha increased its gearing from last year, if the average rate of interest paid on its liabilities is 4.3% (slightly less than profit generated per

Alpha increased its gearing from last year, if the average rate of interest paid on its liabilities is 4.3% (slightly less than profit generated per dollar of asset), then what effect did this have on its return on equity (ROE) for the year? Select one: a. An improvement in the ROE b. A worsening of the ROE c. Neither a favourable or unfavourable effect d. Cannot be determined

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