Question: Why would rms with high Return On Assets (ROA) refrain from leveraging up their rm by borrowing and investing the funds in protable assets? Explain

  • Why would rms with high Return On Assets (ROA) refrain from leveraging up their rm by borrowing and investing the funds in protable assets?

  • Explain why a rm has a decrease in its current ratio but an increase in its quick ratio for the last 3 years.

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