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Suppose Firms A and B have the same amount of assets, pay the same interest rate on their debt, have the same basic earning power (BEP), and have the same tax rate.However, Firm A has a higher debt ratio.If BEP is greater than the interest rate on debt, Firm A will have a higher ROE as a result of its higher debt ratio.
Discrimination
Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, sex, or disability.
Institutional Discrimination
Discrimination that has been embedded into the policies, procedures, and practices of an organization or social system, leading to disadvantages for certain groups.
Individual Discrimination
Discriminatory actions taken by an individual based on prejudice against another individual or group.
Plantation Owners
Individuals who owned and operated large agricultural estates, historically reliant on slave labor, primarily in the pre-Civil War United States and some tropical colonies.
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