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
Answer: A
You might also like to view...
Shadow prices represent
A) the value of one additional unit of a basic variable. B) the value of one less unit of a basic variable. C) the value of one less unit of a specific resource. D) the value of one additional unit of a specific resource. E) None of the above
When preparing the investing activities section of the cash flow statement under both U.S. GAAP and IFRS, firms report acquisitions of fixed assets separate from sales of fixed assets
Indicate whether the statement is true or false.