If Company A has a high profit margin and Company B has a low profit margin, then

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If Company A has a high profit margin and Company B has a low profit margin, then return on assets 

(a) Should be higher for Company A than Company B. 

(b) Should be lower for Company A than Company B. 

(c) Should be the same for Company A and Company B. 

(d) Cannot be determined based on the information given. 


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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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