If a Firm's Return on Investment, I

Multiple Choice

If a firm's return on investment, i.e., earnings after taxes divided by total assets, is 7%, and the firm has no preferred stock financing, it is

A) possible that its return on stockholders' equity is 10%.
B) possible that its return on stockholders' equity is 5%.
C) not possible for its debt-to-equity ratio to be 1.0.
D) not possible for its net profit margin to be 7%.