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A firm has an ROA of 16% and an ROE of 16%. This means that: The firm has 100% of assets financed with equity The

A firm has an ROA of 16% and an ROE of 16%. This means that:

  • The firm has 100% of assets financed with equity
  • The firm is financed with 50% debt and 50% equity
  • The Debt to Assets ratio is equal to 1
  • The firm has 100% of assets financed with debt

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