You Observe That a Firm's ROE Is Above the Industry

question 23

Multiple Choice

You observe that a firm's ROE is above the industry average, but its profit margin and debt ratio are both below the industry average. Which of the following statements is CORRECT?

• A) Its total assets turnover must be above the industry average.
• B) Its return on assets must equal the industry average.
• C) Its TIE ratio must be below the industry average.
• D) Its total assets turnover must be below the industry average.
• E) Its total assets turnover must equal the industry average.

---

Definitions:

Role Construct Repertory

A psychological tool or test that helps to reveal how a person construes or interprets the significant people in their life, based on the theory of personal constructs.

Main Contribution

Denotes the primary or most significant input or impact made by an individual, idea, or invention in any field or area.

Assessment

The process of evaluating or estimating the nature, ability, or quality of someone or something, often used in educational, psychological, or organizational settings.

REP Test

Role Construct Repertory Test; a psychological test for assessing an individual's personal construct system, used to understand how one perceives and evaluates their world.