A firm reports an ROE of 14 percent, a leverage ratio of 1.5, an asset turnover of 1.667, and a profit margin of 9 percent.Calculate the firm's ROA and then comment on the ROA in relation to ROE.What is happening?

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The Answer of A firm reports an ROE of 14 percent, a leverage ratio of 1.5, an asset turnover of 1.667, and a profit margin of 9 percent.Calculate the firm's ROA and then comment on the ROA in relation to ROE.What is happening?

A Firm Reports an ROE of 14 Percent, a Leverage