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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 As return on equity ROE for the year is
Firm As return on equity ROE for the year is
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 As return is greater than its cost of equity
capital.
There is more than one correct statement.
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