3) Assume the following are true:

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 Xs ROE to be the same as Company Ys ROE?

1. NO, it is not possible
2. Yes, if Company Xs TOTAL ASSET TURNOVER is higher than Company Ys.
3. Yes, if Company Xs TOTAL ASSET TURNOVER is the same as Company Ys
4. Yes, if Company Xs TOTAL ASSET TURNOVER is lower than Company Ys
5. Yes, if Company Xs ROA is higher than Company Ys