Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

When would the return on equity equal to the the return on assets? Assume that total assets are equal to $100 and net income is

When would the "return on equity" equal to the "the return on assets"?

Assume that total assets are equal to $100 and net income is not equal to zero. a. whenever (TOTAL EQUITY divided by TOTAL ASSETS) is equal to .5 b. whenever (TOTAL LIABILITIES divided by TOTAL ASSETS) is equal to 0 c. whenever the firm has positive net income d. whenever the TOTAL DEBT RATIO is equal to 1 e. whenever (TOTAL EQUITY divided by TOTAL ASSETS) is equal to 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Financial Risk Management

Authors: Thierry Roncalli

1st Edition

1138501875, 978-1138501874

More Books

Students also viewed these Finance questions

Question

Design a training session to maximize learning. page 296

Answered: 1 week ago

Question

Design a cross-cultural preparation program. page 300

Answered: 1 week ago