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FinanceQ&A LibraryIf a firm decreases its operating costs, all else constant, then the: A. profit margin will decrease. B. return on assets will decrease. C. total asset turnover rate will increase. D. cash coverage ratio will decrease. E. price-earnings ratio will decrease Can you give me detailed explanation?Start your trial now! First week only $4.99!*arrow_forward*

Question

If a firm decreases its operating costs, all else constant, then the:

A. profit margin will decrease.

B. return on assets will decrease.

C. total asset turnover rate will increase.

D. cash coverage ratio will decrease.

E. price-earnings ratio will decrease

Can you give me detailed explanation?

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