Return on Equity Increases When the Expected Rate of Return

question 227

True/False

Return on equity increases when the expected rate of return from the acquired assets is higher than the interest rate on the debt issued to finance the acquired assets.

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Definitions:

Speed Up

To increase the rate or velocity of an object or a process.

Activation Energy

The lowest level of energy required by reactants to partake in a particular chemical process.

Catalysts Function

The role performed by substances that speed up chemical reactions without themselves being consumed or altered permanently.

Collisions

Events where two or more bodies exert forces on each other for a relatively short time, often changing their motion due to the impact.