Which of the Following Statements Is Most Correct

question 57

Multiple Choice

Which of the following statements is most correct?

• A) If a company's ROA is 7 percent, then its ROE must be greater than or equal to 7 percent.
• B) The BEP and ROA will be the same for a company with no debt in its capital structure.
• C) A company with a low debt ratio will have a high equity multiplier.
• D) Both statements a and c are correct.
• E) None of the statements above is correct.

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Definitions:

Unconscious Motivations

Drives and desires operating beneath the level of conscious awareness, influencing behavior according to psychoanalytic theory.

Enduring Traits

Stable and consistent characteristics that define an individual's personality over time.

Personality

The fusion of characteristics that outline an individual's distinctive personality.

Trait

A characteristic or quality that defines or distinguishes a person or thing.