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PROBLEM 2 : The return on equity for ABC Company and XYZ Company is 2 3 . 4 percent and 1 7 percent, respectively. Does

PROBLEM 2: The return on equity for ABC Company and XYZ Company is 23.4 percent and 17 percent, respectively. Does this mean ABC Company is better managed than XYZ Company? Explain your answer. (5 points)
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