Which of the Following Firms Would Be Expected to Have

question 14

Multiple Choice

Which of the following firms would be expected to have a high ROE based on that firm's high profitability?

• A) a medical supply company that provides very precise instruments at a high price to large medical establishments such as hospitals
• B) a grocery store chain that has very high turnover, selling many multiples of their assets per year
• C) a brokerage firm that has high levels of leverage
• D) a low-end retailer that has a low markup on all items it sells