Multiple Choice
If a firm produces a return on assets of 15 percent and also a return on equity of 15 percent,then the firm:
A) has no debt of any kind.
B) is using its assets as efficiently as possible.
C) pays all its earnings out in dividends.
D) also has a current ratio of 15.
E) has an equity multiplier of 2.
Correct Answer:
Verified
Correct Answer:
Verified
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