True or False. Given that ratio analysis uses scaled data, it is fair to compare firms of different sizes relative to each other. For example, Firm A has net income of $100 million and sales of $1 billion. Firm B has net income of $100,000 and sales of $2 million. Profit margin (a scaled measure) is 10% for Firm A and 5% for Firm B. It would be fair to judge the smaller firm as being unsuccessful in terms of its profit margin given its 5% compared to the 10% for the larger firm. True False True or False. In time-trend analysis, a given firm's financial ratios are compared relative to other "peer" firms financial ratios to provide evidence on the company's effectiveness in regard to those ratios. True O False Nixon Hair Products has a debt-to-equity (D/E) ratio of 1.40. Return on assets is 8.7%, and total equity is $520,000. What is the ROE (return on equity)? Choose the range that includes the correct solution. The ROE is greater than or equal to 0%, but less than 7.5% The ROE is greater than or equal to 7.5%, but less than 15.0% The ROE is greater than or equal to 15.0%, but less than 22.5% The ROE is greater than or equal to 22.5%, but less than 30.0% The ROE is greater than or equal to 30.0% Flagler Pharmaceuticals has a profit margin of 9.20 percent, total asset turnover of 1.63, and a ROE of 18.67 percent. What is this firm's debt-to- equity (D/E) ratio? Choose the range that includes the correction solution. The debt-to-equity ratio is greater than or equal to 0, but less than 0.10 The debt-to-equity ratio is greater than or equal to 0.10, but less than 0.20 The debt-to-equity ratio is greater than or equal to 0.20, but less than 0.30 The debt-to-equity ratio is greater than or equal to 0.30, but less than 0.40 The debt-to-equity ratio is greater than or equal to 0.40