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Below are ROEs and Levers of Performance for 10 Diverse Companies, 1998, please explain why are ROEs similar across firms while profit margins, asset turnovers,

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Below are ROEs and Levers of Performance for 10 Diverse Companies, 1998, please explain why are ROEs similar across firms while profit margins, asset turnovers, and financial leverages differ dramatically? (104) :1. ; 2,, :3., (1) Return on Equity (ROE) = Profit Margin (P) (%) Asset Turnover (A) (times) Financial Leverage (T) X (times) (%) II X X X X X BankAmerica Corporation Carolina Power and Light Exxon Corporation Food Lion, Inc. Harley-Davidson, Inc. Intel Corporation Nike, Inc. Southwest Airlines Co. Tiffany & Company The Timberland Company 11.2 13.5 14.6 17.0 20.7 26.0 12.3 18.1 17.4 22.2 10.8 12.8 6.3 2.7 9.9 23.1 4.2 10.4 7.7 6.9 0.1 0.4 1.1 2.8 1.1 0.8 1.8 0.9 1.1 1.8 13.5 2.8 2.1 2.3 1.9 1.3 1.7 2.0 2.0 1.8 X X X X X X O 000 X

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