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Which of the following statements is not correct concerning the effects on the components of return on equity (ROE) under equity method accounting? Select one:

Which of the following statements is not correct concerning the effects on the components of return on equity (ROE) under equity method accounting?

Select one:

a. Net operating profit margin is overstated

b. Financial leverage is understated

c. Asset turnover is understated

d. NOPAT is correctly stated

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