Which of the Following Firms Would Be Expected to Have

question 30

Multiple Choice

Which of the following firms would be expected to have a high ROE based on that firm's high profitability?

• A)a medical supply company that provides very precise instruments at a high price to large medical establishments such as hospitals
• B)a low-end retailer that has a low mark-up on all items it sells
• C)a brokerage firm that has high levels of leverage
• D)a grocery store chain that has very high turnover,selling many multiples of their assets per year

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed by the government.