Under what conditions would a firm39s return on common, Finance Basics

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Under what conditions would a firm39s return on common

Question: 1. Under what conditions would a firm's return on common equity (ROCE) be equal to its return on net operating assets (RNOA)?

2. Under what conditions would a firm return on net operating assets (RNOA) be equal to its return on operating assets (ROOA)?

3. Explain why borrowing might lever up the return on common equity.

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