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Assume the following: Dell Inc. has: Profit margin = . 1 0 ( 1 0 % ) TOTAL LIABILITIES = $ 1 0 0 TOTAL
Assume the following:
Dell Inc. has:
Profit margin
TOTAL LIABILITIES $
TOTAL EQUITY $
Current ratio
Apple Inc. has:
Profit margin
TOTAL LIABILITIES $
TOTAL EQUITY $
Current ratio
Is it possible for Dell Inc. to have the same return on equity ROE as Apple Inc.?
a NO it is not possible
b Yes, if Dell's TOTAL ASSET TURNOVER is higher than Apple's TOTAL ASSET TURNOVER
c Yes, if Dell's TOTAL ASSET TURNOVER is lower than Apple's TOTAL ASSET TURNOVER
d Yes, if Dell's TOTAL ASSET TURNOVER is the same as Apple's TOTAL ASSET TURNOVER
e Yes, if Dell's Cash Ratio is higher than Apple's Cash Ratio
f Yes, if Dell's Cash Ratio is lower than Apple's Cash Ratio
g Yes, if only Dell has more in assets than Apple has in assets
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