Dupont analysis-return on assets

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Dupont Analysis: Company A and Company B each had a return on assets (ROA) of 5.2% in 2015. However Company B's return on equity (ROE) is twice as high as Company A's ROE. Which of the following statements is Correct?

Company B has a higher ratio of total assets to equity than Company A.

Company A has more working capital liquidity than Company B.

Company B has a lower equity multiplier than Company A.

Company A & B have the same equity multiplier.

Reference no: EM131221538

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