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QUESTION

Why would rms with high Return On Assets (ROA) refrain from leveraging up their rm by borrowing and investing the funds in protable assets?

  • Why would firms with high Return On Assets (ROA) refrain from leveraging up their firm by borrowing and investing the funds in profitable assets?
  • Explain why a firm has a decrease in its current ratio but an increase in its quick ratio for the last 3 years.
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