A Company Has a Tax Rate of 40 $\begin{array} { l rr } & \text { Interest } &\mathrm{ROA} \\ &\text { rate } \\\end{array}$

question 134

Multiple Choice

A company has a tax rate of 40%. Leverage would be beneficial for the company for each of the following combinations of interest rates and ROA except
$\begin{array} { l rr } & \text { Interest } &\mathrm{ROA} \\ &\text { rate } \\\end{array}$
a) $\begin{array} { l rr } & 4 \% &&& 6 \% \\\end{array}$
b) $\begin{array} { l rr } & 6 \% &&& 6 \% \\\end{array}$
c) $\begin{array} { l rr } & 14 \% &&& 10 \% \\\end{array}$
d) $\begin{array} { l rr } & 16 \% &&& 10 \% \\\end{array}$

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Definitions:

Isotopes

Variants of a particular chemical element that have the same number of protons in their nuclei but different numbers of neutrons, resulting in different atomic masses.

Protons

Positively charged subatomic particles found within the nucleus of an atom, contributing to the atom's overall positive charge and mass.

Hydrogen Bonding

A type of weak chemical bond formed when a hydrogen atom that is bonded to a highly electronegative atom like oxygen or nitrogen experiences attraction to another electronegative atom.

Molecules

Groups of two or more atoms held together by chemical bonds, constituting the smallest identifiable unit of a compound that retains its composition and chemical properties.