A Firm with a Debt-To-Equity Ratio (D/E) of 0

question 71

Multiple Choice

A firm with a debt-to-equity ratio (D/E) of 0.5, return on assets of 18%, and return on debt of 12% will have a return on equity of which of the following?

• A) 15.00%
• B) 16.67%
• C) 20.00%
• D) 21.17%

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Definitions:

In-Betweening

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Video games that integrate digital information or images into the user's real-world environment.

Mobile Device

A portable computing device such as a smartphone or tablet, characterized by wireless connectivity and a touchscreen interface.