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__________ Saves Money and Better Allocates Global Resources, as It

question 22

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__________ saves money and better allocates global resources, as it benefits everyone because countries specialize in what they can do better than others.


Definitions:

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Return on Assets

A financial ratio that measures how efficiently a company uses its assets to generate net income, typically expressed as net income divided by total assets.

Return on Debt

An assessment of the profitability relative to the amount of debt used, often calculated as the interest rate or yield on the debt instrument.

Interest Tax Shields

The reduction in income taxes that results from taking allowable deductions for interest expenses.

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