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The Following Return on Investment Ratios Were Computed for ET

Question 125

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The following return on investment ratios were computed for ET Company:
The following return on investment ratios were computed for ET Company:    (a) Financial leverage percent for each year was:    (b) Explain briefly the stockholders' advantage or disadvantage each year: 20A: 20B: 20C: 20D: (a) Financial leverage percent for each year was:
The following return on investment ratios were computed for ET Company:    (a) Financial leverage percent for each year was:    (b) Explain briefly the stockholders' advantage or disadvantage each year: 20A: 20B: 20C: 20D: (b) Explain briefly the stockholders' advantage or disadvantage each year: 20A:
20B:
20C:
20D:

Correct Answer:

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(a) 20A: 15% - 12% = +3% positive
20B: 1...

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