Multiple Choice
A firm currently has $600 in debt for every $1,000 in equity.Assume the firm uses some of its cash to decrease its debt while maintaining its current equity and net income.Which one of the following will decrease as a result of this action?
A) equity multiplier
B) total asset turnover
C) profit margin
D) return on assets
E) return on equity
Correct Answer:
Verified
Correct Answer:
Verified
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