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A stock analyst notes that a firms ROE has been rising over time. He knows there are good reasons why this may be occurring as

A stock analyst notes that a firms ROE has been rising over time. He knows there are good reasons why this may be occurring as well as bad or dangerous reasons. Which of the following are good reasons for a rising ROE?

  • A. better cost control
  • B. increased efficiency
  • C. increased use of debt financing
  • D. a and b
  • E. a, b, and c

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