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Based on the following, which is true? Company 1 - Return on Assets: 10.0%, Net Profit Margin: 8.5%, Debt / Equity: 0.8x Company 2 -

Based on the following, which is true? Company 1 - Return on Assets: 10.0%, Net Profit Margin: 8.5%, Debt / Equity: 0.8x Company 2 - Return on Assets: 8.2%, Net Profit Margin: 7.7%, Debt / Equity: 1.0x Company 3 - Return on Assets: 14.2%, Net Profit Margin: 10.1%, Debt / Equity: 1.4x

a Company 2 is more efficient at generating sales from assets than Company 1
b Company 3 is the worst at generating profits from its sales
c Company 1 is the worst at generating profits from its assets
d Company 2 is the least leveraged firm
e Company 3 is the most leveraged firm

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