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ASAP PLEASE Return on assets is 5%. Return on equity is 25%. Is that possible? A. Yes. If total equity relative to total assets is

ASAP PLEASE

Return on assets is 5%. Return on equity is 25%. Is that possible?

A.

Yes. If total equity relative to total assets is large enough.

B.

No. Return on assets is too low.

C.

No. Return on equity cannot be larger than return on assets.

D.

Yes. If debt relative to equity is large enough.

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