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Company A has sales of $2,000 , assets of $500 , and a debt ratio (debt/assets) of 40 percent, and an ROE of 10 percent.

Company A has sales of

$2,000

, assets of

$500

, and a debt ratio (debt/assets) of 40 percent, and an ROE of 10 percent. Company B has the same sales, assets, and net income, but its ROE is 15 percent. What is B's debt ratio? Hint: DuPont Analysis may be useful.

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Company A has sales of $2,000, assets of $500, and a debt ratio (debt/assets) of 40 percent, and an 10 percent. Company B has the same sales, assets, and net income, but its ROE is 15 percent. What is B's debt ratio? Hint: DuPont Analysis may be useful

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