All Else Held Constant,an Increase in Leverage Should Increase the ROE

question 30

True/False

All else held constant,an increase in leverage should increase the ROE.

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Definitions:

Substitutes

Products or services that can replace each other in use, offering consumers choices in the marketplace.

Demand Curve

A graphical representation showing the relationship between the quantity of a good consumers are willing and able to purchase and its price.

Income

Money that an individual or business receives in exchange for providing a good or service or through investing capital.

Substitutes

are goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.