Question: Firms A and B have the same Return on Assets. If Firm A has a higher Return on Equity than Firm B, which of the

Firms A and B have the same Return on Assets. If Firm A has a higher Return on Equity than Firm B, which of the following is true?

Firm A has a higher debt ratio than firm B
Firm A has a lower debt ratio than firm B
Firm A has a higher net profit margin than firm B
Firm A has a higher gross profit margin than firm B

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