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  3. Study Set
    Managerial Accounting Study Set 11
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    Exam 14: Financial Statement Analysis
  5. Question
    If a Company's Return on Assets Is Substantially Higher Than
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If a Company's Return on Assets Is Substantially Higher Than

Question 10

Question 10

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If a company's return on assets is substantially higher than its cost of borrowing,then the common stockholders would normally want the company to have a relatively high debt/equity ratio.

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