Companies Heidee and Leaudy Are Virtually Identical in That They

question 73

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:

Erythropoietin

A hormone produced by the kidneys that stimulates the production of red blood cells in the bone marrow.

Mineralcorticoids

A class of steroid hormones that regulate electrolyte and water balance by the kidneys.

Testosterone

A primary male sex hormone that plays key roles in the development of male reproductive tissues and secondary sexual characteristics.

Adrenal Gland

An endocrine gland situated above each kidney that releases adrenaline and steroids, aiding in stress management and metabolic processes.