Using leverage to expand your business will increase profitability if your a. return on equity equals the interest rate b. return on equity is lower than the interest rate c. return on assets is higher than the interest rate d. return on assets is lower than the interest rate e. none of the above

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Q: risk implications of improving net profit margin to increase Return on Equity?

A: Net profit margin is the percentage of net profit to sales revenue

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A: Equity is ownership of the company and debt is external to company.

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Q: When only equity counts as capital, the higher the capital ratio, the O lower the leverage measure.…

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Q: how do banks improve their net profit margin to increase Return on Equity?

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Q: The return on assets ratio is a: OLiquidity ratio. O Solvency ratio. O Profitability ratio.

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Q: While computing the cost of equity using the formula , rs=D1P0+grs=D1P0+g, we do not make any…

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