Question $1$

Standard Corp. has reported total assets worth $$450M$ 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.$\text{'}$s Net Income for the past year was $$20M$ 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 $$20M$ and one competitor earned a $5\mathrm{.}25\%$ return on assets.

Standard Corp.$\text{'}$s Weighted Average Cost of Capital $($WACC$)$ was $8\mathrm{.}6\%$ and the industry's average WACC was $8\mathrm{.}5\%$

Standard Corp.$\text{'}$s return on assets was $4\%$ and its nearest competitor $($based on market share$)$ earned a $4\mathrm{.}75\%$ return on assets.