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You have been asked to analyze a firm in the energy industry. The firms major financial statements are listed above. The industry profit margin is
You have been asked to analyze a firm in the energy industry. The firms major financial statements are listed above. The industry profit margin is 0.12, the industry total debt ratio is 0.32, and the industry return on capital is 0.36. Which of the following statements is true for the firm?
The firm has a stronger ability to convert revenue into profit than the industry | ||
The firm is more dependent on equity than the industry | ||
The firm is more productive with external investment than the industry | ||
Two choices, A and B, are correct | ||
None of the A-B-C choices are correct |
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