A Firm Has a ROE Equal to the Industry Average

question 80

Multiple Choice

A firm has a ROE equal to the industry average but its price to book ratio is below the industry average.You know that the firm's _________.

• A) earnings yield is above the industry average
• B) P/E ratio is above the industry average
• C) dividend payout ratio is too high
• D) interest burden must be below the industry average

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Definitions:

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