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True or false 5. Suppose that there are two companies with the same ROE and capital structure (which is total liabilities / total assets). But
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5. Suppose that there are two companies with the same ROE and capital structure (which is total liabilities / total assets). But it is possible that these two companies have different ROAs. [ True / False] 6. EAR(Effective Annual Rate) is always greater than or equal to APR(Annual Percentage Rate). [ True / False] 7. For a given APR(Annual Percentage Rate)., if the compounding period is set to be infinitely short (which means "every-moment-compounding" or "continuously compounding"), then EAR(Effective Annual Rate) diverges to "infinitely large" (=). [ True / False] Step by Step Solution
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