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In one fiscal year, company A has ROA of 10% and ROE of 18%. Which of the following is TRUE? The firm's profit margin is

In one fiscal year, company A has ROA of 10% and ROE of 18%. Which of the following is TRUE?

The firm's profit margin is negative

This is impossible as ROA and ROE should be very close

It means the firm's interest rate is lower than its ROA, which allows the company to amplify its equity return

The firm's financial leverage is negative

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