If a Firm Has an ROA of 10% and an ROE

question 28

Multiple Choice

If a firm has an ROA of 10% and an ROE of 10%, then the

• A) firm must have enough cash on hand to pay some extra dividends.
• B) firm is losing money.
• C) operating results of the firm are improving.
• D) firm has no financial leverage.

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Definitions:

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Compress Picture

The process of reducing the file size of an image, often by lowering its resolution or quality.

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An option in graphic editing applications to revert an image to its original state.

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The part of an image that lies behind the main subjects, often used to provide context or enhance the aesthetic appeal of the photo.