Widget Co and Tools Inc -Which of the Following Statements Is Correct?
A)Widget Has Higher

question 57

Multiple Choice

Widget Co. and Tools Inc. both operate in the same industry. They are capital-intensive companies producing widgets. Below are selected data:
$\begin{array}{lll}&\text { Widget Co. }&\text { Tools Inc. }\\\text { Net operating assets/common equity } & 1.37 & 1.53 \\\text { Net operating profit margin } & 19 \% & 21 \% \\\text { Income tax rate } & 47 \% & 28 \% \\\text { Revenues/net operating assets } & 0.81 & 0.61 \\\text { EBIT/revenues } & 38 \% & 32 \%\end{array}$
-Which of the following statements is correct?

• A)Widget has higher RNOA than Tools.
• B)Widget has lower RNOA than Tools.
• C)Widget has same RNOA as Tools.
• D)Insufficient information to calculate RNOA.

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Definitions:

Target Tissue

Specific tissues or organs that are affected by specific hormones, drugs, or other signals within an organism, responding due to the presence of appropriate receptors.

Gonadotropin-releasing Hormone

A hormone responsible for the release of follicle-stimulating hormone (FSH) and luteinizing hormone (LH) from the anterior pituitary.

Follicle-stimulating Hormone

A hormone secreted by the anterior pituitary gland that promotes the formation of ova or sperm.

Luteinizing Hormone

A hormone produced by the anterior pituitary gland that triggers ovulation and supports the corpus luteum in females; in males, it stimulates testosterone production.