Return on Equity Will Be Higher Than Return on Assets

question 72

True/False

Return on equity will be higher than return on assets if there is debt in the capital structure.

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Definitions:

Fraction

A numerical quantity that is not a whole number, representing a part of a whole.

Base Number

A mathematical value serving as a foundational digit in a numbering system, determining its counting process, such as 2 in binary or 10 in decimal.

Dosages

The prescribed amount and frequency of medication intake or drug administration.

Calculate

To determine or estimate a number or value after considering various factors or performing mathematical operations and equations.