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In analyzing two firms in the same industry, we gather the following information: Assuming there are no accounting distortions, which of the following statements is

In analyzing two firms in the same industry, we gather the following information:
Assuming there are no accounting distortions, which of the following statements is correct?
Firm A's return on equity (ROE) for the year is 11.4%.
Firm A's return on equity (ROE) for the year is 12.6%.
Firm A is a less attractive investment opportunity than Firm B because Firm A has a lower net income.
Firm A is a more attractive investment opportunity than Firm B because Firm A's return is greater than its cost of equity
capital.
There is more than one correct statement.
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