Companies Heidee and Leaudy Are Virtually Identical in That They

question 73

Multiple Choice

Companies Heidee and Leaudy are virtually identical in that they are both profitable,and they have the same total assets (TA) ,Sales (S) ,return on assets (ROA) ,and profit margin (PM) .However,Company Heidee has the higher debt ratio.Which of the following statements is CORRECT?

• A) Company Heidee has a lower operating income (EBIT)than Company LD.
• B) Company Heidee has a lower total assets turnover than Company Leaudy.
• C) Company Heidee has a lower equity multiplier than Company Leaudy.
• D) Company Heidee has a higher fixed assets turnover than Company Leaudy.
• E) Company Heidee has a higher ROE than Company Leaudy.

---

Definitions:

Inflammation

The body's response to injury or infection, marked by redness, heat, swelling, and pain.

Infant

A young child or baby who is in the earliest stage of development.

Transgendered Individuals

Individuals whose gender identity or gender expression differs from the sex they were assigned at birth.

Biological Sex

The classification of living beings, generally as male or female, based on their reproductive anatomy and functions.