Question
Ratio information for a company and its industry are shown below: PM AT EM Company: 13.4% 1.31 1.52 Industry: 12.6% 1.12 1.05 Which of the
Ratio information for a company and its industry are shown below: PM AT EM Company: 13.4% 1.31 1.52 Industry: 12.6% 1.12 1.05 Which of the following statements is most CORRECT? a. The company is doing a better job managing its expenses than the overall industry. b. The company must have a higher stock price than average, since its ROE is 11.9% higher than the industrys ROE. c. The company could decrease its debt level from 34.2%, which would make its Equity Multiplier decrease, thus increasing the company's overall ROE. d. The company's return on assets is 1.31, which is greater than the industry's return on assets. e. The company has less debt than the average firm in its industry.
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