The Coffee House, a local coffee shop, has a low return on equity. What does this indicate?
A) Stockholders will receive high returns.
B) The total value of the firm's assets are even lower than the value of the owners' equity.
C) Immediate managerial attention is needed.
D) The company could go into debt paying off its stockholder dividends.
E) The company's debt load will increase.
Correct Answer:
Verified
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