Question: . Given that ROIC, the interest rate on debt, and the debt-to-equity ratio are constant, how will increasing the tax rate affect ROE? a) Decrease

. Given that ROIC, the interest rate on debt, and the debt-to-equity ratio are constant, how will increasing the tax rate affect ROE?

a) Decrease it.

b) Not affect it.

c) Increase it.

d) There is no set relationship.

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