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26. As EBIT drops, the return on equity (ROE) of a levered rm drops the ROE of an otherwise identical unlevered rm. a. the same

26. As EBIT drops, the return on equity (ROE) of a levered rm drops the ROE of an otherwise identical unlevered rm. a. the same as b. relatively more than c. relatively less than d. more or less than (it cannot be determined)

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