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please answer both questions 9. A firm has a gross profit margin of 23%, operating profit margin of 10% and a debt- to-equity ratio of

please answer both questions image text in transcribed
9. A firm has a gross profit margin of 23%, operating profit margin of 10% and a debt- to-equity ratio of 1.2:1. The comparative ratios for its peers are 21%, 7% and .89:1. Compared to its peers, the firm has: * Low operating & financial leverage O High operating leverage and low financial leverage Low operating leverage and high financial leverage O High operating and financial leverage 10. A firm has traditionally earned a return on equity capital of 15%. Its cost of equity capital has been estimated to be 9%. The stock market capitalization of its traded shares in relation to the book value of its equity is likely to be: greater lesser about the same impossible to tell (more information required)

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