A Firm Has a Higher Asset Turnover Ratio Than the Industry

question 68

Multiple Choice

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

• A) the firm has a higher P/E ratio than other firms in the industry.
• B) the firm is more likely to avoid insolvency in the short run than other firms in the industry.
• C) the firm is more profitable than other firms in the industry.
• D) the firm is utilizing assets more efficiently than other firms in the industry.
• E) the firm has higher spending on new fixed assets than other firms in the industry.

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A British philosopher, logician, mathematician, historian, writer, social critic, and Nobel laureate, known for his work in mathematical logic and his advocacy for nuclear disarmament and social reform.

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