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Assume BDS acquired its main supplier, ABC. As a result of the acquisition, BDS finds that its net profit margin increased but its ROE remained
Assume BDS acquired its main supplier, ABC. As a result of the acquisition, BDS finds that its net profit margin increased but its ROE remained constant. A decrease in which one of these ratios is most apt to be the reason why the ROE did not increase with the increase in the profit margin?
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