Question: 14. Firm A has a Return on Equity (ROE) equal to 24%, while firm B has an ROE of 15% during the same year. Both

14. Firm A has a Return on Equity (ROE) equal to 24%, while firm B has an ROE of 15% during the same year. Both firms have a total debt ratio (D/A) equal to 0.8. Firm A has an asset turnover ratio of 0.9, while firm B has an asset turnover ratio equal to 0.4. From this we know that a. Firm A has a higher net profit margin than firm B. b. Firm B has a higher net profit margin than firm A. c. Firm A and B have the same profit margin. d. You need more information to say anything about the firm's net profit margin.

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