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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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