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Firm A has a Return of Equity of 21.5%, while Firm B has a Return on Equity of 17.0%. Gary Allenson, an equity analyst at

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Firm A has a Return of Equity of 21.5%, while Firm B has a Return on Equity of 17.0%. Gary Allenson, an equity analyst at Merrill Lynch, has cited these ROE numbers as justification for his conclusion that Firm A has a competitive advantage over Firm B. Please examine the data below, and explain whether you agree with Mr. Allenson's conclusions

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