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Red Corp. has a rate of return on assets of 10% and a debt/equity ratio of 2 to 1. Not including any indirect effects on

Red Corp. has a rate of return on assets of 10% and a debt/equity ratio of 2 to 1. Not including any indirect effects on earnings, the immediate impact of retiring debt on these ratios is

Return on Assets. Debt/Equity Ratio a. increase. increase b. decrease. decrease c. increase. decrease d. decrease. increase

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