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2. The profitability ratios reflect the net result of all of the financing policies and operating decisions. True False 3. It might be possible to

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2. The profitability ratios reflect the net result of all of the financing policies and operating decisions. True False 3. It might be possible to improve the ROE by using more debt, which in turn will lead to an increase in the P/E ratio and thus in the firm's stock price O True False

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