Widget Co and Tools Inc -Which of the Following Statements Is Correct?
A)Widget Has Higher

question 57

Multiple Choice

Widget Co. and Tools Inc. both operate in the same industry. They are capital-intensive companies producing widgets. Below are selected data:
$\begin{array}{lll}&\text { Widget Co. }&\text { Tools Inc. }\\\text { Net operating assets/common equity } & 1.37 & 1.53 \\\text { Net operating profit margin } & 19 \% & 21 \% \\\text { Income tax rate } & 47 \% & 28 \% \\\text { Revenues/net operating assets } & 0.81 & 0.61 \\\text { EBIT/revenues } & 38 \% & 32 \%\end{array}$
-Which of the following statements is correct?

• A)Widget has higher RNOA than Tools.
• B)Widget has lower RNOA than Tools.
• C)Widget has same RNOA as Tools.
• D)Insufficient information to calculate RNOA.

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Definitions:

Knowledge

Facts, information, and skills acquired through experience or education, the theoretical or practical understanding of a subject.

Research Methods

Systematic strategies, techniques, and approaches used to conduct and analyze research.

Embodied Cognition

An approach to the study of cognition asserting that cognition is shaped and constrained by the context of the body of the organism experiencing the processing.

Evolutionary Approach

A perspective in psychology that interprets human behaviors and mental processes as adaptations that have evolved to increase survival and reproduction.