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A firm has a Return on Assets and Return on Equity that are both lower than its industry averages. Its Debt Ratio and Total Asset

A firm has a Return on Assets and Return on Equity that are both lower than its industry averages. Its Debt Ratio and Total Asset Turnover both equal its industry average. This firms main problem is that:

a.

its debt is too low

b.

its Return on Equity is too low.

c.

its operating costs are too low.

d.

its Profit Margin on Sales is too low.

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