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    Financial Management Theory and Practice Study Set 4
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    Exam 3: Analysis of Financial Statements
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    Since the ROA Measures the Firm's Effective Utilization of Assets
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Since the ROA Measures the Firm's Effective Utilization of Assets

Question 77

Question 77

True/False

Since the ROA measures the firm's effective utilization of assets (without considering how these assets are financed), two firms with the same EBIT must have the same ROA.

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