When would the "return on equity" equal the "return on assets"?

A) Whenever the debt to equity ratio is one
B) Whenever the debt ratio is zero
C) Whenever a firm has positive net worth
D) Whenever the firm has positive net worth and positive net income


B

Business

You might also like to view...

Return ratios are measures of the relationship between the

a. income earned and the investment made in the company by the various groups. b. revenue earned and the total equity of a company. c. total equity of a company and its cash flows for the period. d. profitability and liquidity aspects of a company.

Business

The more two people are alike in terms of cultural and linguistic differences, the greater the likelihood that there will be communication breakdowns

Indicate whether the statement is true or false.C

Business

Both callable and non-callable bonds can be purchased by the issuing corporation in the open market

Indicate whether the statement is true or false

Business

After reviewing the household budget, you estimate the following auto costs

Ownership cost per mile $ .30 Operating cost per mile .15 Total cost per mile .45 The marginal cost of driving your car another mile is therefore A) $ .30. B) .15. C) .45. D) .90.

Business