Increasing Leverage Will Always Act to Increase a Firm's ROE

question 77

True/False

Increasing leverage will always act to increase a firm's ROE.

---

Definitions:

Intuition

The ability to understand or know something immediately, without the need for conscious reasoning.

Learned Patterns

Behaviors, attitudes, or skills acquired through experience or education rather than being innate.

Consciousness

The state of being awake and aware of one's surroundings, thoughts, and experiences.

Incubation

A process or period of development and preparation, often used in reference to ideas, projects, or entrepreneurial ventures.