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If GUW and BFG Have the Same Return on Equity,then

Question 35

Multiple Choice

If GUW and BFG have the same return on equity,then:


A) Only I is true
B) Only III is true
C) Only II and III are true
D) Only I and III are true
I.The two companies must have the same operating performance.
II.If GUW has higher leverage than BFG,it must also have higher operating performance.
III.If BFG has lower operating performance than GUW,it must have higher leverage.

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