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Arrow, Inc

Question 22

Multiple Choice

Arrow, Inc. has an ROE of 15.45% and Clip Company has an ROE of 18.3%. Which of the following statements is true?


A) Clip reported more dollars of profit than Arrow
B) Clip has more of the firm financed with debt than Arrow does
C) Clip is able to bring its product to market more efficiently than Arrow
D) Arrow would likely be able to borrow money at a lower interest rate than would Clip

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