Question: Firm E has a lower ROE than Firm F . After applying the DuPont equation, you discover that Firm E has a significantly lower asset

Firm E has a lower ROE than Firm F. After applying the DuPont equation, you discover that
Firm E has a significantly lower asset turnover, while both firms have similar profit margins and
equity multipliers. What does this suggest about Firm E's performance?
Firm E is more efficient in its operations compared to Firm F.
Firm E is generating less revenue from its assets compared to Firm F.
Firm E has lower profitability than Firm F.
Firm E is using more leverage to achieve its ROE.
Firm E has a lower ROE than Firm F. After applying

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