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Which of the following is most CORRECT? a. A firms ROA cannot equal its ROE. b. A firms EPS is highly correlated with its stock
Which of the following is most CORRECT? a. A firms ROA cannot equal its ROE. b. A firms EPS is highly correlated with its stock price. c. EVA is different from Net Income because EVA reflects the cost of equity but not the cost of debt. d. If a firms Equity Multiplier is 1.0, the firm does not have any debt in its capital structure. e. When two projects of different size (of investment) are compared using ROE, the one with the higher ROE will always add more value to the firm that the other.
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