Company A and Company B have the same gross profit margin and the same

Company A and Company B have the same gross profit margin and the same total asset turnover,
but company A has a higher return on equity. This may result from

A) Company A has a lower debt ratio.
B) Company B has more common stock.
C) Company A has lower selling and administrative expenses, resulting in a higher net profit
margin.
D) Company A has lower cost of goods sold, resulting in a higher net profit margin.

ANSWER

C