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    Managerial Finance Study Set 2
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    Exam 3: Financial Statements and Ratio Analysis
  5. Question
    The More Money a Firm Borrows ________
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The More Money a Firm Borrows ________

Question 10

Question 10

Multiple Choice

The more money a firm borrows ________.


A) the lower is its ROE because more interest expense reduces earnings
B) the larger is the gap between its ROA and its ROE
C) the lower is its operating profit margin
D) the higher is its gross profit margin

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