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