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If a firm produces a 13 percent return on assets and also a 13 percent return on equity, then the firm: a. May have short-term,
If a firm produces a 13 percent return on assets and also a 13 percent return on equity, then the firm:
a. May have short-term, but not long-term debt.
b. Is using its assets as efficiently as possible.
c. Has no net working capital.
d. Has a debt-equity ratio of 1.0.
e. Has an equity multiplier of 1.0.
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