Heavily using debt to finance assets results in higher ____ as compared to ROI.
A) return on sales
B) return on stockholders' equity
C) return on assets
D) times interest earned

Question

Quizplus · Accepted Answer

Heavily using debt to finance assets typically results in higher return on stockholders' equity (ROE) compared to return on investment (ROI) because the use of debt financing can amplify the returns to equity holders as long as the return on the total assets exceeds the cost of the debt.

Heavily Using Debt to Finance Assets Results in Higher ____