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

question 69

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

---

Definitions:

Serious Medical Issues

Health conditions that require extensive medical attention, potentially including complex procedures or long-term care.

Organic Produce

Fruits and vegetables grown without the use of synthetic pesticides, fertilizers, or genetically modified organisms, adhering to specific organic farming standards.

Positively Correlated

A relationship between two variables where both variables move in tandem in the same direction.

Same Direction

Refers to variables moving in unison, either increasing or decreasing together.