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Which of the following statements is ( are ) true about the return on assets ( ROA ) and return on common equity ( ROE
Which of the following statements is are true about the return on assets ROA and return on common equity ROE of Johnston, Inc. in
The ROA and ROE of the company are both below the industry average.
The ROA and ROE of the company are both above the industry average.
Comparing the ROA and ROE to the industry average in the company's ROE is closer to the industry average.
If the company's net profit margin and financial leverage multiplier equity multiplier move to the industry average, the company will have the same ROA and ROE as industry average.
If the company's net profit margin moves to the industry average, the company will have a ROA and an ROE less than the industry average.
If the company's net profit margin moves to the industry average, the company will have a ROA and an ROE greater than the industry average.
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