Which of the Following Is Most Correct

question 34

Multiple Choice

Which of the following is most correct?

• A)When the return on capital employed (ROCE)is less than the before tax cost of debt, a company can increase its ROE by trading out equity and into debt.
• B)When the return on capital employed (ROCE)is more than the before tax cost of debt, a company can increase its ROE by trading out equity and into debt.
• C)When the return on capital employed (ROCE)is less than the after tax cost of debt, a company can increase its ROE by trading out equity and into debt.
• D)When the return on capital employed (ROCE)is more than the after tax cost of debt, a company can increase its ROE by trading out equity and into debt.

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Definitions:

Pessimistic

Having a tendency to see the worst aspect of things or believe that the worst will happen.

Gantt Charts

Gantt charts are visual project management tools used to schedule tasks within a project, showing start and end dates, as well as dependencies between tasks.

Flow Charts

Diagrams that depict the sequence of steps in a process, showing how tasks are interconnected and flow from one to the next.

Top-management Commitment

The dedication and involvement of an organization's highest-ranking officers in supporting and driving a project or strategy.