Which of the Following Statements Is Most Correct

question 3

Multiple Choice

Which of the following statements is most correct?

• A) If two companies have the same return on equity, they should have the same stock price.
• B) If Company A has a higher profit margin and higher total assets turnover relative to Company B, then Company A must have a higher return on assets.
• C) If Company A and Company B have the same debt ratio, they must have the same times interest earned (TIE) ratio.
• D) Answers b and c are correct.
• E) None of the answers above is correct.

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Definitions:

Distress

Severe anxiety, sorrow, or pain that causes emotional suffering.

Probability

A measure of how likely an event is to occur, expressed as a fraction between 0 and 1.

Self-Monitoring Personality

A trait of individuals who carefully observe and regulate their behavior to fit social situations and expectations.

Cooperate

involves working together with others towards a common goal or intent, emphasizing collaboration and mutual assistance.