ROE equals ROA when a firm has no debt

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Reference no: EM131509294

Which of the following statements is incorrect?

1. ROE equals ROA when a firm has no debt

2. Factors that affect ROE include profit margin, asset turnover and growth rates

3. ROE will be higher than ROA when a firm utilizes debt,

4. none of the above; all are correct statements.

Reference no: EM131509294

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