Solved

When Will Return on Equity Equal Return on Capital

Question 47

Multiple Choice

When will return on equity equal return on capital?


A) whenever the firm has equal debt and equity financing.
B) whenever the firm has no interest payments on debt.
C) whenever the value of the firm's assets exceeds the value of its equity.
D) ROE will never equal ROC.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions