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1. If a firms ROE is low and management wants to improve it, explain how using more debt might help. 2.Refer to an online finance

1. If a firms ROE is low and management wants to improve it, explain how using more debt might help.

2.Refer to an online finance source such as Yahoo! Finance or Google Finance to look up the P/E ratios for Verizon Communications and Walmart. Which company has the higher P/E ratio? What factors could explain this?

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