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Which of the following would cause a firm's ROIE to be high, but the ROA to be low? A. A low gros profit margin but
Which of the following would cause a firm's ROIE to be high, but the ROA to be low?
A. A low gros profit margin but a high net profit margin.
B. Financing a relatively large proportion of assets with equity.
C. Paying a very low interest rate on the firm's debts.
D. Leasing a large amount of equipment.
E. Financing a relatively large proportion of assets with debt.
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