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Question
Company A and Company B have the same gross profit margin and the same total asset turnover, but company A has a higher return on equity. This may result fromA) Company B has more common stock.
B) Company A has a lower debt ratio.
C) Company A has lower selling and administrative expenses, resulting in a higher net profit margin.
D) Company A has lower cost of goods sold, resulting in a higher net profit margin.
Answer
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