Last year rosenberg corp. had $265,000 of assets, $18,775 of net income, and a debt-to-total-assets ratio of 32%. now suppose the new cfo convinces the president to increase the debt ratio to 48%. sales and total assets will not be affected, but interest expenses would increase. however, the cfo believes that better cost controls would be sufficient to offset the higher interest expense and thus keep net income unchanged. by how much would the change in the capital structure improve the roe?

Which of the following statements is (are) true? i. free entry to a perfectly competitive industry results in the industry's firms earning zero economic profit in the long run, except for the most efficient producers, who may earn economic rent. ii. in a perfectly competitive market, long-run equilibrium is characterized by lmc < p < latc. iii. if a competitive industry is in long-run equilibrium, a decrease in demand causes firms to earn negative profit because the market price will fall below average total cost.