Company X and Company Y are in the same industry and have the following ratios.

	Company X	Company Y	Industry Average
Current Ratio	1.2	0.89	1.1
Equity Multiplier (1+TD/CE)	0.2	0.4	0.3
Total Asset Turnover	1.9	2.1	2.5
Net Profit Margin	4.20%	3.80%	4.00%
Return on Equity	12.40%	14.80%	15.00%
Dividend Payout Ratio	25.00%	10.00%	20.00%

Which of the following is true?

I. Company X has higher leverage than Y.

II. Company X is more liquid than an average firm in the industry.

III. Both X and Y employ their assets more efficiently than an average firm in the industry.

IV. Company Y retains more earnings than X.

a	III and IV only
b	I and IV only
c	II and IV only
d	I and III only