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Assume the following: ROE PM TAT EM Marisa Inc 36% 9% 4 1 Dimple Corp 18% 4.5% 2 2 A. Dimple Corp does a better

Assume the following:

ROE PM TAT EM

Marisa Inc 36% 9% 4 1

Dimple Corp 18% 4.5% 2 2

A. Dimple Corp does a better job managing its assets.

B. Marisa Inc does a better job controlling its expenses.

C. Dimple Corp uses less debt financing than Marisa Inc.

D. Marisa Inc has a higher ROE simply because it uses more debt financing.

E. Marisa Inc does a poorer job controlling its expenses.

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