Hilton Publishing and Jordan Publishing Have Identical Debt-Equity Ratios and Profit

question 14

Multiple Choice

Hilton Publishing and Jordan Publishing have identical debt-equity ratios and profit margins. However, Hilton's ROA is higher than Jordan's. Therefore, it must be true that:

• A) Hilton has a lower total asset turnover ratio.
• B) Jordan's ROE is higher than Hilton's.
• C) Hilton uses its assets more efficiently to generate sales.
• D) Hilton's operating efficiency is higher than Jordan's.
• E) Hilton has a lower investment in total assets than Jordan does.

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Definitions:

Trophic Level

The position that an organism occupies in a food chain, which determines the flow of energy and nutrients from one organism to another.

Humus

Substances in the soil originating from decomposed plant materials and leaves, broken down by microorganisms.

Porous

Characterized by the presence of tiny holes or spaces through which liquids or gases can pass, making the material permeable.

Precipitation

Any form of water, liquid or solid, that falls from the atmosphere and reaches the ground, including rain, snow, sleet, and hail.