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    Managerial Finance Study Set 2
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    Exam 3: Financial Statements and Ratio Analysis
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    If a Firm Uses Any Debt at All and If
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If a Firm Uses Any Debt at All and If

Question 94

Question 94

Multiple Choice

If a firm uses any debt at all and if the firm generates positive earnings for common stockholders,then which of the following below is TRUE?


A) ROE > ROA
B) ROE < ROA
C) ROE = ROA
D) Gross profit margin < net profit margin

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