Question
When would the return on equity (ROE) definitely equal the return on assets (ROA)? Whenever a firm's total debt ratio is equal to zero. Whenever
When would the return on equity (ROE) definitely equal the return on assets (ROA)?
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| Whenever a firm's total debt ratio is equal to zero. |
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| Whenever a firm's long-term debt ratio is equal to zero. |
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| Whenever a firm's return on equity is equal to 100%. |
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| Whenever a firm has no long-term debt. |
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| Whenever a firm's debt-to-equity ratio is equal to one. |
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett
7th Edition
0073530751, 9780073530758
