Question: 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

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 1) Firm A has a higher net profit margin than firm B. 2) Firm B has a higher net profit margin than firm A. 3) Firm A and B have the same profit margin. 4) More information in needed to say anything about the firm'c not nmati

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