A Firm Has a Lower Asset Turnover Ratio Than the Industry

question 2

Multiple Choice

A firm has a lower asset turnover ratio than the industry average, which implies

• A)the firm has a lower P/E ratio than other firms in the industry.
• B)the firm is less likely to avoid insolvency in the short run than other firms in the industry.
• C)the firm is less profitable than other firms in the industry.
• D)the firm is utilizing assets less efficiently than other firms in the industry.

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