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5 (1 point) Dave Smith's rate of return on assets (ROA) this year was 5.5% while his rate of return on equity (ROE) was 7%.

5 (1 point) Dave Smith's rate of return on assets (ROA) this year was 5.5% while his rate of return on equity (ROE) was 7%. Given this information, what can you generalize about the average interest rate Dave is paying on his debt relative to the rates of return above? Briefly explain your answer. 13 A

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