True regarding the return on equity ratio

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Which of the following is true regarding the Return on Equity (ROE) ratio? ROE is an important measure of management’s effectiveness on the firm’s profitability ROE is easier to compare across firms than ROA because it is independent of the firm’s financing policy ROE is negatively related to the firm’s ability to turn assets into sales ROE is unrelated to the firm's net profit margin None of the Above.

Reference no: EM131859453

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