If the Interest Rate on Debt Is Higher Than the ROA,then

question 51

Multiple Choice

If the interest rate on debt is higher than the ROA,then a firm's ROE will _________.

• A) decrease
• B) increase
• C) not change
• D) change but in an indeterminable manner

---

Definitions:

Agriculture

The science, art, and practice of cultivating plants and livestock, marking a key development in the rise of sedentary human civilization.

Food Production

The process of cultivating food crops and raising animals for consumption, an essential component of human civilization and survival.

Independent Invention

the process through which different societies or cultures independently create or discover similar technologies, practices, or ideas without direct influence from each other.