Companies Heidee and Leaudy Are Virtually Identical in That They

question 95

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:

Official Tasks

Responsibilities or duties formally assigned to an individual or organization by an authority.

Institutional Setting

The context or environment defined by established organizations or structures in which activities and interactions take place.

Ethnomethodological

Pertains to a sociological perspective focusing on how people make sense of their everyday lives and the methods they use to interact with one another.

Ethnomethodological

Pertaining to ethnomethodology, a sociological perspective focusing on the ways in which people make sense of their everyday life and the methods they use to do so.