Which of the Following Statements Is Correct

question 15

Multiple Choice

Which of the following statements is correct?

• A)If Company A has a higher debt ratio that Company B, then we can be sure that A will have a lower times- interest-earned ratio than B.
• B)Suppose two companies have identical operations in terms of sales, cost of goods sold, interest rate on debt, and assets.However, Company A used more debt than Company B; that is, Company A has a higher debt ratio.Under these conditions, we would expect B's profit margin to be higher than A's.
• C)The ROE of any company which is earning positive profits and which has a positive net worth (or common equity) must exceed the company's ROA.
• D)Statements a, b, and c are all true.
• E)Statements a, b, and c are all false.

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Definitions:

Ethnicity

A category of people who identify with each other based on common ancestral, social, cultural or national experiences.

Diversity

The state of being diverse; variety, especially in the context of people with different backgrounds, cultures, or demographics.

Diversity

The inclusion of individuals representing more than one national origin, color, religion, socioeconomic stratum, sexual orientation, etc.

Benefit

An advantage or profit gained from something or an action that promotes well-being.