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Question

Chaity Company's return on equity (ROE) was 11.4% in 200A and 13.1% in 200B. The increase in this ratio could be caused by which of the following ?

An increase in the relative portion of stockholders equity to fund assets.

An increase in net profit margin.

A decrease in net profit margin.

A decrease in the asset turnover ratio.

ANS : 2

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