Question: Assume Castillo Corp. increases its operating efficiency such that costs decrease while sales remain constant. As a result, given all else constant, the return on

Assume Castillo Corp. increases its operating efficiency such that costs decrease while sales remain constant. As a result, given all else constant, the

return on assets will decrease.

equity multiplier will decrease.

return on equity will increase.

profit margin will decline.

total asset turnover will increase.

Assume Castillo Corp. increases its operating efficiency such that costs decrease

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