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Which of the Following Statements About the Relationship Between RNOA

Question 43

Multiple Choice

Which of the following statements about the relationship between RNOA and ROCE is correct?


A) ROCE is always greater than RNOA
B) ROCE is greater than RNOA, if RNOA is greater than after-tax cost of dividends
C) ROCE is greater than RNOA, if RNOA is greater than cost of debt
D) ROCE is greater than RNOA, if RNOA is greater than after-tax cost of debt

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