Below are selected financial data on four different firms. Use the DuPont equation to identify why the ROEs of the four firms are different. Which of the following statements is true?

	I.	The ROE for firm D is higher than for firm C because D is more profitable.
	II.	The ROE for firm A is higher than for firm B because A has higher asset turnover.
	III.	The ROE for firm B is higher than for firm D because B uses more leverage.
	IV.	The ROE for firm D is higher than for firm B because D has higher asset turnover.

Firm A B C Selected Financial Data (in $1,000) Book Value of Assets Book Value of Equity Sales Net Income $35,000 $15,000 $12,000 $1,980 $1,500 $750 $950 $80 $9,900 $8,900 $3,000 $882 $30,000 $20,000 $60,000 $3,960 D