Which of the Following Is True of a Firm That

Multiple Choice

Which of the following is true of a firm that has no debt in its capital structure?

A) Its return on equity (ROE) will be greater than its return on asset (ROA) .
B) Its return on equity (ROE) will be lesser than its return on asset (ROA) .
C) Its return on equity (ROE) will be equal to its return on asset (ROA) .
D) None of the above.