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If a firm produces a twelve percent return on assets and also a twelve percent return on equity, then the firm: Multiple Choice may have

If a firm produces a twelve percent return on assets and also a twelve percent return on equity, then the firm:

Multiple Choice

  • may have short-term, but not long-term debt.

  • is using its assets as efficiently as possible.

  • has no net working capital.

  • has a debt-equity ratio of 1.0.

  • has an equity multiplier of 1.0.

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