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:

Wakefulness

The state of being conscious and alert, allowing for active engagement with the environment.

Nails on Fingers

Keratin-based protective coverings at the end of each finger, serving various functions including sensation and manipulation of small objects.

Head-Down Position

A position where the head is placed lower than the rest of the body, often used in medical procedures or treatments.

Sex Determined

This term refers to the process by which the biological sex of an organism is established, usually based on genetic or chromosomal criteria.