Multiple Choice
If a firm decreases its operating costs,all else constant,then
A) the profit margin increases while the cash coverage ratio decreases.
B) the return on assets increases while the return on equity decreases.
C) both the return on assets and the return on equity increase.
D) both the profit margin and the equity multiplier increase.
E) the total asset turnover rate decreases while the profit margin increases.
Correct Answer:

Verified
Correct Answer:
Verified
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