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Which of the follow affects ROE? a. Net Profit Margin b. Total Asset Turnover c. Equity...

Which of the follow affects ROE?

a. Net Profit Margin

b. Total Asset Turnover

c. Equity Multiplier (leverage)

d. A, B and C

e. A and B

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Answer: d. A, B and C ROE = profit margin x asset turnover x equity multiplier Equity multiplier is the financial leverage me

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