If a Company's Return on Assets Is Substantially Lower Than

question 55

True/False

If a company's return on assets is substantially lower than its cost of borrowing, then the common stockholders would normally want the company to have a relatively high debt/equity ratio.

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Definitions:

Method Call

The process of invoking a method in programming, causing the specified code within the method to be executed.

Int[]

A way to declare an array of integers in programming languages like Java and C#.

Double[]

A data type in programming that represents an array of double precision floating point numbers.