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Break down the return on equity (ROE) of the two firms below using a DuPont analysis. Which of the following statements is correct? a) The
Break down the return on equity (ROE) of the two firms below using a DuPont analysis. Which of the following statements is correct? a) The ROE of Firm Z is enhanced by greater use of debt. b) The ROE of Firm Z is enhanced by lesser use of debt. c) The ROE of Firm Z is reduced by greater use of debt d) The ROE of Firm Z is unaffected by its mix of debt and equity
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