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Based on the following, which is true? Company 1 - Return on Assets: 13%, Net Profit Margin: 4.6%, Debt / Equity: 1.2x Company 2 -

Based on the following, which is true? Company 1 - Return on Assets: 13%, Net Profit Margin: 4.6%, Debt / Equity: 1.2x Company 2 - Return on Assets: 10%, Net Profit Margin: 6.2%, Debt / Equity: 2.0x Company 3 - Return on Assets: 12%, Net Profit Margin: 5.1%, Debt / Equity: 1.3x

A Company 2 is the least leveraged firm
B Company 3 is the most leveraged firm
C Company 1 is the best at generating profits from its assets
D Company 1 is better at generating profits from its sales than Company 3
E Company 3 is the least efficient at generating sales on its assets

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