If a Firm Produces a Twelve Percent Return on Assets

Multiple Choice

If a firm produces a twelve percent return on assets and also a twelve percent return on equity,then the firm:

A) may have short-term, but not long-term debt.
B) is using its assets as efficiently as possible.
C) has no net working capital.
D) has a debt-equity ratio of 1.0.
E) has an equity multiplier of 1.0.