Question: If a firm's return on its assets ( operating profits divided by total assets ) is greater than the cost of the debt ( interest
If a firm's return on its assets operating profits divided by total assets is greater than the cost of the debt interest rate the owner's return on equity will increase as the firm uses more debt. What is this called?
a return on equity if using debt
b a core principle of finance
c return on assets
d return on equity if using all equity
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