Return on Equity Will Not Change If the Firm Increases

question 65

True/False

Return on equity will not change if the firm increases its use of debt.

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Definitions:

Stakeholders

Individuals or groups with an interest, involvement, or investment in a project, organization, or business, and who can affect or be affected by its outcomes.

Interests

The desires, concerns, or needs that motivate individuals in decision-making or negotiation.

Ownership

The legal right or state of having full control and possession over property, assets, or an entity.

Ethics Competency

The ability to recognize ethical issues, make reasoned ethical judgments, and implement decisions in a manner consistent with established ethical standards.