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Examveda

Company low earning power and high interest cost cause financial changes which have

A. high return on equity

B. high return on assets

C. low return on assets

D. low return on equity

Answer: Option B

Solution(By Examveda Team)

Company low earning power and high interest cost cause financial changes which have high return on assets. The higher the ROA number, the better, because the company is earning more money on less investment.

This Question Belongs to Commerce >> Financial Management

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