Lorraine, Inc. has a debt-to-equity ratio of 0.49 and a ROE of 16.8%. The median ROE for similar companies in the same industry as Lorraine is about 15.1%. The median debt-to-equity ratio for similar companies in the same industry is 0.36. Based on this industry information, how does Lorraine compare to similar companies and what are the causes of these differences?

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The Answer of Lorraine, Inc. has a debt-to-equity ratio of 0.49 and a ROE of 16.8%. The median ROE for similar companies in the same industry as Lorraine is about 15.1%. The median debt-to-equity ratio for similar companies in the same industry is 0.36. Based on this industry information, how does Lorraine compare to similar companies and what are the causes of these differences?