solved : Firm A is a technology company that develops, licenses, and

  

Firm A is a technology company that develops, licenses, and supportsa wide range of software products and services for various computing devices worldwide. Firm B provides IT products and services worldwide including strategic outsourcing, process, integrated technology, cloud, and maintenance services, as well as technology-based support services worldwide. In addition to this firm B provides consulting services and also develops software although the majority of revenue is generated by IT infrastructure including servers.Which of the following is the most likely explanation for the higher ROE for firm #2?Firm #2 has higher profit marginFirm #2 has lower profit marginFirm #2 has less debtFirm #2 has more debtAccountingBusinessFinancial AccountingFIN MISC

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