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9. If you are told that a business earns a 10% rate of return on its assets (ROA-10%) and that their average cost of debt
9. If you are told that a business earns a 10% rate of return on its assets (ROA-10%) and that their average cost of debt is 5% ( 5%), what can you say about the return rate on their equity (ROE)? A. ROE is less than 5% B. ROE is between 5% and 10% C. ROE is equal to 10% D. ROE is greater than 10%
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