Companies Heidee and Leaudy Are Virtually Identical in That They

question 45

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.

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Definitions:

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of DNA, carrying genetic information.

Histones

Proteins that DNA wraps around, forming a compact structure called chromatin, which helps in the organization and regulation of genes.

Hereditary Features

Traits or characteristics that are passed from parents to offspring through genes.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in growth, development, functioning, and reproduction of all known living organisms.