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From Dupont identity, you can conclude that if the efficiency of a firm's usage of its assets deteriorates, then ROE is likely to: Decrease, holding
From Dupont identity, you can conclude that if the efficiency of a firm's usage of its assets deteriorates, then ROE is likely to: Decrease, holding others constant Increase, holding others constant Decrease, only if equity multiplier increases Increase, only if equity multiplier decreases Stay constant, holding others constant
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