Which of the Following Firms Would Be Expected to Have

question 54

Multiple Choice

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

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