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Trading on the equity refers to: (a) the cost of debt exceeding the return on assets

Accounting Aug 28, 2020

Trading on the equity refers to:

(a) the cost of debt exceeding the return on assets.

(b) the after-tax cost of debt being lower if the tax rate is lower.

(c) the return on assets being greater than the after-tax-cost of debt.

(d) unfavorable financial leverage.

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