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A company's Return on assets is greater than its Return on equity . Which of the following is the most likely cause of this? Group
A company's Return on assets is greater than its Return on equity.
Which of the following is the most likely cause of this?
Group of answer choices
- All of these are likely causes.
- Average equity is greater than average assets.
- Earnings before interest and tax is greater than net profit.
- The entity has too much debt.
- The return on assets is lower than the cost of finance.
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