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If Alex Corporation takes out a bank loan to purchase a machine used in production and everything ...
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If Alex Corporation takes out a bank loan to purchase a machine used in production and everything ...
If Alex Corporation takes out a bank loan to purchase a machine used in production and everything else stays the same, its equity multiplier will ________, and its ROE will ________.
A) increase; increase
B) decrease; decrease
C) increase; decrease
D) decrease; increase
Textbook
Corporate Finance: The Core
Edition:
4
th
Authors:
Berk, DeMarzo
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ty
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