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To Study Changes in ROA, the Analyst Can Disaggregate ROA

Question 73

Multiple Choice

To study changes in ROA, the analyst can disaggregate ROA into the product of two other ratios:


A) the gross profit for ROA ratio and the total assets turnover ratio.
B) the profit margin for ROA ratio and the inventory turnover ratio
C) the gross margin for ROA ratio and the inventory turnover ratio.
D) the profit margin for ROA ratio and the total assets turnover ratio
E) the gross margin for ROA ratio and the total assets turnover ratio.

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