Question: Firm A has a Return on Equity ( ROE ) equal to 2 0 % , while firm B has an ROE of 1 0
Firm A has a Return on Equity ROE equal to while firm B has an ROE of during the same year. Both firms have a total debt ratio equal to Firm A has an asset turnover ratio of while firm has an asset turnover ratio equal to From this we know that
Firm A has a Return on Equity ROE equal to while firm B has an ROE of during the same year. Both furms have a total debt ratio equal to Firm A has an asset turnover ratio of while firm has an asset turnover ratio equal to From this we know that
a Firm A has a higher profit margin than firm
b Firm has a higher profit margin than firm
c Firm A and have the same profit margin
d Firm A has a higher equity multiplier than firm
e You need more information to say anything about the firm's profit margin
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