Firm a and Firm B Have the Same Total Assets

question 84

Multiple Choice

Firm A and Firm B have the same total assets, ROA and profit margin (greater than 0) . However, Firm B has a higher debt ratio and interest expense than Firm A. Which of the following statements is correct?

• A) Firm B must have a higher ROE than firm A.
• B) Firm B must have a higher capital intensity ratio than Firm A.
• C) Firm B must have a higher fixed asset turnover than Firm A.
• D) Firm B must have a lower ACP than Firm A.

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Definitions:

Person-Centered Therapist

A therapist who practices a form of psychotherapy that emphasizes the importance of an individual's experience within a therapeutic setting, focusing on creating a supportive environment for self-exploration.

Unconditional Positive Regard

A concept in humanistic psychology which suggests showing complete support and acceptance of a person regardless of what they say or do.

Person-Centered Therapy

A therapeutic approach developed by Carl Rogers, emphasizing the client's capacity for self-direction and understanding of one's own feelings and behaviors in a supportive environment.

Therapy Session

A period of treatment where psychological issues are discussed with a therapist to encourage understanding and alleviate distress.