The Use of Debt Financing Ensures an Increase in Return

question 14

True/False

The use of debt financing ensures an increase in return on equity.

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Definitions:

Income Inelastic

Describes a good or service whose demand does not significantly change with a change in consumers’ income.

Agricultural Products

Items derived from farming activities, including both food products like fruits, vegetables, and grains, as well as non-food items like cotton and wool.

Farm Productivity

The measure of output (crop or livestock) produced per unit of input (such as land, labor, or capital) on a farm.

U.S. Farm Products

Agricultural goods produced in the United States, which include a wide range of food and raw materials.