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It is advantageous for managers to increase debt financing and exhibit an increased ROE.
Intuitive Thought
A cognitive process that involves making decisions or solving problems based on instincts, feelings, or immediate perceptions rather than conscious reasoning.
Egocentric Thought
Thinking that does not take into account the viewpoints of others.
Centration
A cognitive limitation in early childhood thinking, characterized by focusing on one aspect of a situation while neglecting others.
Decentering
The cognitive ability to consider multiple aspects of a situation or problem simultaneously, crucial for understanding others’ perspectives and for problem-solving.
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