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Which of the following statements is correct? Widget Co. and Tools Inc. both operate in the same industry. They are capital-intensive companies producing widgets. Below
Which of the following statements is correct? Widget Co. and Tools Inc. both operate in the same industry. They are capital-intensive companies producing widgets. Below are selected data: Widget Co. Tools Inc. 1.53 Net operating assets/common equity 1.37 Net operating profit margin 19% 21% 47% Income tax rate 28% Revenueset operating assets 0.81 0.61 38% 32% EDIT/revenues Widget has higher RNOA than Tools. Widget has lower RNOA than Tools. Widget has same RNOA as Tools. Insufficient information to calculate RNOA
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