A firm's ROE is above the industry average, but its profit margin and equity multiplier are both below the industry average. Which of the following statements is correct? A. It's total assets turnover is above the industry average B. Its total asset turnover is below the industry average C. Its TIE ratio is below the industry average D. It's ROA equals the industry average E. Its total assets turnover equals the industry average

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A: DSO tells about the days in which a firm will receive cash from its debtors for the sales made.

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A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

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A: Equity multiplier is also referred to as leverage ratio or financial leverage and indicates that a…

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A: The correct option with proper explanation are as follows

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A: Financial Leverage refers to making a firm levered by increasing firm's exposure with debt capital.…

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Q: Which of the following statements is CORRECT?

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A:

Q: Assume that a firm's total assets and sales remain constant. Would an increase in each of the ratios…

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A: The ratio analysis helps to analyse the financial statements of the business.

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Q: industry

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A: Liquid assets are those assets which a firm can convert into cash in a very short span of time.…

Q: Profitability ratios include the profit margin on sales, the return on total assets, and the return…

A: Profitability ratios are a class of financial metrics that are used to assess a business's ability…