If Two Firms, GUW and BFG, Have the Same Return

question 5

Multiple Choice

If two firms, GUW and BFG, have the same return on equity (ROE) , then:
I.The two companies must have the same operating performance.
II.If GUW has higher leverage than BFG, then GUW must also have higher operating performance.
III.If BFG has lower operating performance than GUW, then BFG must have higher leverage.

• A)Only I is true
• B)Only III is true
• C)Only I and III are true
• D)Only II and III are true

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Positive

Exhibiting or emphasizing beneficial qualities, or expressing optimism and support.

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Characterized by the absence rather than the presence of a particular attribute, feature, or outcome.

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A false belief strongly held despite incontrovertible evidence to the contrary.

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Elements within an individual's DNA that can influence their traits and health.