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Joe Harris is interested in why the returns on equity differ from one company to another. He chose several company-specific variables to explain the return on equity, including financial leverage and capital expenditures. In his model: A. return on equity is the independent variable, and financial leverage and capital expenditures are dependent variables B. return on equity, financial leverage, and capital expenditures are all independent variables. C. return on equity is the dependent variable, and financial leverage and capital expenditures are independent variables. |