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Firm A and Firm B have the same total assets, ROA and profit margin (greater than 0). However, Firm B has a higher debt ratio
Firm A and Firm B have the same total assets, ROA and profit margin (greater than 0). However, Firm B has a higher debt ratio and interest expense than Firm A. Which of the following statements is correct?
| Firm B must have a lower ACP than Firm A. | |
| Firm B must have a higher capital intensity ratio than Firm A. | |
| Firm B must have a higher ROE than firm A. | |
| Firm B must have a higher fixed asset turnover than Firm A. |
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