Question and answer
if the rate of return on its assets is _____ then the cost of borrowing, then the owners' rate of return on equity will _______ as the firm uses ______ debt
If the rate of return on its assets is Greater than the cost of borrowing, then the owners' rate of return on equity will Increase as the firm uses More debt.
Expert answered|emdjay23|Points 4224|
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Asked 5/15/2014 7:09:39 PM
Updated 5/15/2014 9:25:29 PM
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This answer has been confirmed as correct and helpful.
Confirmed by debnjerry [5/15/2014 9:25:29 PM]
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