Question: Which is a 100% true statement after analyzing the three companies below using the DuPont Identity: ROE Profit Margin Total Asset Turnover Equity Multiplier A

Which is a 100% true statement after analyzing the three companies below using the DuPont Identity:

ROE Profit Margin Total Asset Turnover Equity Multiplier
A Stata Corp 12% 22% 0.45 1.25
B Drake Corp 17% 9% 0.35 5.25
C Golf Corp 12% 16% 0.62 1.20

.

Golf Corp is definitely the best investment, no doubt about it

Drake Corp has the highest ROE because they have much more leverage than the other firms.

Stata corp would make a good investment because it has the best total asset turnover of the three firms

Golf Corp is the best in terms of converting sales into net income

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