If an Entity Is Able to Earn More on Borrowings

question 34

Multiple Choice

If an entity is able to earn more on borrowings than the cost of those borrowings the return on equity will:

• A) vary.
• B) increase.
• C) decrease.
• D) be unchanged.

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Definitions:

Genetic Material

The molecules (DNA or RNA) that carry genetic information coding for the development and functioning of an organism.

Same Father

Indicates siblings or individuals who share the same biological father, regardless of their maternal lineage.

Different Mothers

A phrase that indicates siblings who share one parent in common, typically referring to those who have the same father but different mothers.

Monozygotic Twins

Monozygotic Twins are twins that develop from one zygote that splits and forms two embryos, also known as identical twins, sharing nearly 100% of their genetic material.