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If ROC ( ROIC ) is less than a firm's cost of capital, which of the following must be true? The firm's ROE is negative.

If ROC

(

ROIC

)

is less than a firm's cost of capital, which of the following must be true?

The firm's ROE is negative.

The firm's EVA is positive.

The firm's ROE is equal to zero.

The firm's EVA is negative.

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