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Q-1: If a firm produces a 1.25 percent return on assets and also a 5 percent return on equity, then the firm: Select one: a.

Q-1: If a firm produces a 1.25 percent return on assets and also a 5 percent return on equity, then the firm:

Select one:

a. has no debt of any kind.

b. is using its assets as efficiently as possible.

c. has an equity multiplier of 4.

d. has no net working capital.

e. has an equity multiplier of 2.

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