Question: Two companies A and B reported the same ROE (return on equity) in 2021. Company A has higher leverage than company B. Which of the

Two companies A and B reported the same ROE (return on equity) in 2021. Company A has higher leverage than company B. Which of the following statements is TRUE?

a. Company A must have a lower ROA (return on assets) than company B.

b. Company A must have a lower total assets turnover than company B.

c. Company A must have a higher ROA (return on assets) than company B.

d. Company A must have a higher net profit margin than company B.

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