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$\text{'}$s return on equity $($ROE$)$ for the year is $11\mathrm{.}4\%.$

Firm A$\text{'}$s return on equity $($ROE$)$ for the year is $12\mathrm{.}6\%.$

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$\text{'}$s return is greater than its cost of equity

capital.

There is more than one correct statement.