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8 The Du Pont equations for a company named Babylon Corporation and its industry are shown below: ROE=PMATEM Babylon: 19.87%=6.6%2.151.4 Industry: 19.72%=5.8%2.001.7 Which of the
8 The Du Pont equations for a company named Babylon Corporation and its industry are shown below: ROE=PMATEM Babylon: 19.87%=6.6%2.151.4 Industry: 19.72%=5.8%2.001.7 Which of the following statements is FALSE? A. The industry's return on assets is 2.59 percentage points lower than Babylon's return on assets. B. The industry is more productive with its assets than Babylon. C. Babylon has a better return on its equity capital primarily because of its higher productivity of its assets and its higher profit margin. D. Babylon does a better job managing its expenses. E. The amount of debt in Babylon's capital structure is 28.57 percent. The Du Pont equations for a company named Babylon Corporation and its industry are shown below: ROE=PMATEM Babylon: 19.87%=6.6%2.151.4 Industry: 19.72%=5.8%2.001.7 Which of the following statements is FALSE? A. The industry's return on assets is 2.59 percentage points lower than Babylon's return on assets. B. The industry is more productive with its assets than Babylon. C. Babylon has a better return on its equity capital primarily because of its higher productivity of its assets and its higher profit margin. D. Babylon does a better job managing its expenses. E. The amount of debt in Babylon's capital structure is 28.57 percent
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