Which of the Following Statements Is Most Correct

Multiple Choice

Which of the following statements is most correct?

A) If a firm's ROE and ROA are the same, this implies that the firm is financed entirely with common equity. (That is, common equity = total assets) .
B) If a firm has no lease payments or sinking fund payments, its times-interest-earned (TIE) ratio and fixed charge coverage ratios must be the same.
C) If Firm A has a higher market to book ratio than Firm B, then Firm A must also have a higher price earnings ratio (P/E) .
D) All of the statements above are correct.
E) Answers a and b are correct.