Given That ROIC,the Interest Rate on Debt,and the Debt-To-Equity Ratio

question 23

Multiple Choice

Given that ROIC,the interest rate on debt,and the debt-to-equity ratio are constant,how will increasing the tax rate affect ROE?

• A)Decrease it.
• B)Not affect it.
• C)Increase it.
• D)There is no set relationship.

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Definitions:

Inventory Turnover

A metric that measures how often a company sells and replaces its stock of goods over a certain period, indicating the efficiency of inventory management.