Answer:
False
Explanation:
An increase in financial leverage only results in a higher return on equity when the return on assets is higher than the cost of the leverage (i.e. the interest rate on debt).
Given the relationship below among, total assets, equity and debt (leverage)
total assets = equity + debt
and equity = total asset - debt,
We can deduce the equation below
Return on Equity = Return on Asset (ROA) - Return to Debt (ROD) (approximately)
Accordingly, if ROA is greater than ROD, an increase in financial leverage will result in a higher ROE. If the cost of debt (ROD) is however higher than ROA, an increase in financial leverage will result in a lower ROE.
The best and most correct answer among the choices provided by your question is the third choice or letter C.
Nigeria <span>will be MOST affected by environmental changes brought on by human activities and climate change.</span>
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Answer: c. Agile
Explanation: The agile approach involves a technique for iterative and incremental development of software and it involves collaboration between teams. The team of programmers and software developers interacting directly with customers and developing samples based on their requirements, and adjusting those samples based on their feedback which results in lesser time spent on contract negotiation and documenting processes shows that Hutch Inc. is employing agile methods.
<span>Let x = account's original amount.
7x/6 = 420
x/6 = 60
x = 360
interest earned = (7/6 - 1)x = 1/6(360) = $60
Therefore, the interest that she will earn is $60.
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