Question
44. A Debt/Assets ratio of 75% and a ROE of 12% means: a. the owners of XYZ are financing 75% of the firms assets in
44. A Debt/Assets ratio of 75% and a ROE of 12% means:
a. the owners of XYZ are financing 75% of the firms assets in order to receive a 12% return on their personal investment in the companys stock
b. 12% of the firms profits are financed with equity
c. the firm can cover interest payments with $0.25 of every dollar left for profit
d. 25% of assets are financed with owners equity
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
IFRS 3rd edition
1118978080, 978-1119153726, 1119153727, 978-1119153702, 978-1118978085
