Debt while maintaining its current equity and net income

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Reference no: EM13976238

Quixote Industries currently has $6 million in debt and $10 million in equity. Assume the firm uses some of its cash to decrease its debt while maintaining its current equity and net income. Which one of the following will decrease as a result of this action?

equity multiplier

total asset turnover

profit margin

return on assets

return on equity

Reference no: EM13976238

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