If two firms have the same net profit margin and the same asset turnover ratio (i.e., the
same ROA), which one should have the higher ROE--the one that uses more or less
debt? Explain.

Question

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The Answer of If two firms have the same net profit margin and the same asset turnover ratio (i.e., the
same ROA), which one should have the higher ROE--the one that uses more or less
debt? Explain.

If Two Firms Have the Same Net Profit Margin and the Same