The fact that the return on common stockholders equity is higher than the return on total assets

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The fact that the return on common stockholders’ equity is higher than the return on total assets suggests that a company:
a. Has made good use of financial leverage.
b. Has funded asset acquisition primarily with debt.
c. Has excessive debt financing.
d. Has good control of operations.

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Managerial Accounting

ISBN: 12

3rd Edition

Authors: James Jiambalvo

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