QUESTION 14 The Du Pont equations for a corporation and its industry are shown below: ROE Corporation: Industry: 27.30% 30.40% PM x AT x EM 13% X 1.5 1.4 1.9 X 1.6 10% X Which of the following statements is most FALSE? The industry has a higher return on its equity capital because its better return on assets and greater use of O A. debt (percentage-wise) outweigh its inability to maintain as high of a profit margin compared to the corporation OB. The lower the equity multiplier, the lower the debt ratio. O C. For every dollar of sales generated by the industry, ten cents of net income is achieved for the industry. The corporation is managing to maintain more net income compared to its sales than the industry. OD. O E. The industry has a debt ratio of 37.5 percent, whereas the corporation's debt ratio is 28.57 percent