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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Definitions:

Stream Classes

Classes in Java that are part of the java.io package, used for reading and writing to files or other input and output streams.

Subclass Type

Subclass type refers to the classification of a subclass which is derived from a superclass inheriting its properties and methods, potentially with additional features or modifications.

Superclass

In object-oriented programming, a class from which other classes, known as subclasses, inherit fields and methods.