Question $1$

Standard Corp. has reported total assets worth $\backslash (\backslash$$ $450\backslash$mathrm$\{$M$\}\backslash )$ for the past year. Which of the following scenarios is a correct quantitative representation of the fact that Standard Corp. is at a competitive disadvantage?Standard Corp's return on assets was $4\backslash \%$ and its nearest competitor $($based on market share$)$ earned a $\backslash (4\mathrm{.}75\backslash \%\backslash )$ return on assets.Standard Corp.$\text{'}$s Net Income for the past year was $\backslash (\backslash$$ $20\backslash$mathrm$\{$M$\}\backslash )$ and the industry's average return on assets for the same period was $0\mathrm{.}05$Standard Corp.$\text{'}$s Net Income for the past year was $\backslash (\backslash$$ $20\backslash$mathrm$\{$M$\}\backslash )$ and one competitor earned a $\backslash (5\mathrm{.}25\backslash \%\backslash )$ return on assets.Standard Corp.$\text{'}$s Weighted Average Cost of Capital $($WACC$)$ was $\backslash (8\mathrm{.}6\backslash \%\backslash )$ and the industry's average WACC was $\backslash (8\mathrm{.}5\backslash \%\backslash )$