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26) Assume the following are true: a b. C. d. Company X has a profit margin lower than Company Y. Company X and Company Y

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26) Assume the following are true: a b. C. d. Company X has a profit margin lower than Company Y. Company X and Company Y have the same amount of TOTAL LIABILITIES Company X and Company Y have the same amount of TOTAL EQUITY Is it possible for Company X's ROE to be the same as Company Y's ROE? NO, it is not possible Yes, il Company X' TOTAL ASSET TURNOVER is higher than Company Y's. Yes, il Company X's TOTAL ASSET TURNOVER is the same as Company Y's Yes, il Company X's TOTAL ASSET TURNOVER is lower than Company Y's Yes, il Company X'S ROA is higher than Company Y's! 27) Two firms have identical asset turnover and profit margins. However, the two firms have different ROE values. Therefore, it must be true that A) The firms have different ROA values as well. B) The firms have different levels of operating efficiency. C) The firms differ in the efficiency of using their assets to generate sales, D) The firms have different degrees of financial leverage. E) The firms have different dividend policies. e. 28) Jacob Inclus the following: ROE - 14% Sales - $10,000 Total Debt Ratio - 25 Total Liabilities - $100,000 What is ROA? A. 10.50% B. 56% C. 3.50% D. 18.67% E.14% 29) Assume that JJ, Inc. has the following: TOTAL ASSETS of $1845,and TOTAL EQUITY of 51185. What is the total debt ratio? A. 8012 B.6423 C..1899 D. 3577 E. There is not enough information to answer this question You need the following information to answer the following 2 questions Assume that Dell Corp has total liabilities of S15,000, and total assets of $80,000. It has sales of $50,000 and a profit margin of 20%, 30) What is ROA (return on assets)? 31) What is net income

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