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Which of the Following Firms Would Be Expected to Have

Question 74

Multiple Choice

Which of the following firms would be expected to have a high ROE based on that firm's high profitability?


A) a medical supply company that provides very precise instruments at a high price to large medical establishments such as hospitals
B) a low-end retailer that has a low mark-up on all items it sells
C) a brokerage firm that has high levels of leverage
D) a grocery store chain that has very high turnover,selling many multiples of its assets per year
E) a mining firm that is mostly engaged in exploration for new deposits

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