You Observe That a Firm's ROE Is Above the Industry

question 51

Multiple Choice

You observe that a firm's ROE is above the industry average, but its profit margin and debt ratio are both below the industry average. Which of the following statements is CORRECT?

• A) its total assets turnover must equal the industry average.
• B) its total assets turnover must be above the industry average.
• C) its return on assets must equal the industry average.
• D) its tie ratio must be below the industry average.
• E) its total assets turnover must be below the industry average.

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Definitions:

Minnesota Importance Questionnaire

A psychological assessment tool designed to measure an individual's work values and importance placed on various aspects of work.

Counselor

A professional trained to provide guidance and support in personal, social, or psychological matters.

Theory of Work Adjustment

A psychological theory that suggests job satisfaction and performance result from the correspondence between an individual's abilities and values and the demands and rewards of a job.

TWA

Stands for Theory of Work Adjustment, a framework that describes how individuals seek to achieve and maintain correspondence with their work environment.