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

Using debt to finance assets increases financial leverage, which can amplify the return on stockholders' equity (ROE) if the return on assets (ROA) exceeds the cost of debt.

Heavily Using Debt to Finance Assets Results in Higher as Compared