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If a firms ROE is above the industry average, but its profit margin and debt ratio (D/E) are both below the industry average: a. Its
- If a firms ROE is above the industry average, but its profit margin and debt ratio (D/E) are both
below the industry average:
a. Its total assets turnover must be above the industry average.
b. Its total assets turnover must be below the industry average.
c. Its debt ratio needs to come down.
d. Any conclusion must depend on the equity multiplier, not the debt ratio.
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