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The Du Pont equations for a corporation and its industry are shown below: ROE PM...

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The Du Pont equations for a corporation and its industry are shown below: ROE PM AT x EM Corporation: 29.40% 14% x 1.4 X 1.50 Industry: 33.66% 11% x 1.8 X 1.70 Which of the following statements is most FALSE? Which of the following statements is most FALSE? O For every dollar of assets owned by the corporation, sales in the amount of $1.40 is generated The corporation is managing to maintain more net income compared to its sales than the industry The industry has a higher return on its equity capital because its better asset productivity and greater use of debt (which reduces its use of equity) outweigh its inability to maintain as high of a profit margin compared to the corporation. The industry has a debt ratio of 41 percent, whereas the corporation's debt ratio is 33 percent The higher the equity woultiplier, the lower the debt ratio

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