Basic earning power exceeds its cost of debt financing

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Company A's basic earning power (BEP) exceeds its cost of debt financing (rd). If it increases its debt ratio, then which of the following statements is CORRECT? a. Company A will increase its return on assets (ROA). b. Company A will increase its higher times interest earned (TIE) ratio. c. Company A will increase its return on equity (ROE). d. Company A will increase its Basic Earning Power (BEP).

Reference no: EM131043494

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