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You Observe That a Firm's Profit Margin Is Below the Industry

Question 58

Multiple Choice

You observe that a firm's profit margin is below the industry average, its debt ratio is below the industry average, and its return on equity exceeds the industry average. What can you conclude?


A) Return on assets is above the industry average.
B) Total assets turnover is above the industry average.
C) Total assets turnover is below the industry average.
D) Both statements a and b are correct.
E) None of the statements above is correct.

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