Which of the Following Firms Would Be Expected to Have

Multiple Choice

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

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