Company low earning power and high interest cost cause financial changes which have

[amp_mcq option1=”high return on equity” option2=”high return on assets” option3=”low return on assets” option4=”low return on equity” correct=”option3″]

The correct answer is: C. low return on assets

A company with low earning power and high interest cost will have a low return on assets. This is because the company is not generating enough profit to cover its interest costs, which means that it is not making a profit on its assets. This can be a sign of financial trouble, and the company may need to take steps to improve its financial situation.

Here is a brief explanation of each option:

  • A. high return on equity – This is not the correct answer because a company with low earning power and high interest cost will not have a high return on equity.
  • B. high return on assets – This is not the correct answer because a company with low earning power and high interest cost will not have a high return on assets.
  • C. low return on assets – This is the correct answer because a company with low earning power and high interest cost will have a low return on assets.
  • D. low return on equity – This is not the correct answer because a company with low earning power and high interest cost will not have a low return on equity.
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