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Which of the following statements are false? 1. The ROE decomposition makes use of the profit margin, asset turnover, and debt to equity ratio. Firms

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Which of the following statements are false? 1. The ROE decomposition makes use of the profit margin, asset turnover, and debt to equity ratio. Firms with an operating loss can still report positive operating cash flows. 2. 3. If a firm's profit margin decreases its return on equity must also decrease. 4. A decrease in the accounts receivable turnover ratio means a firm is collecting its receivables faster. Statement one (1) is false. Statement two (2) is false. Statement three (3) is false. Statement four (4) is false

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