If a Firm's Expected Return on Equity Equals Its Expected

question 51

Multiple Choice

If a firm's expected return on equity equals its expected return on assets,then the:

• A) expected return on debt exceeds the expected return on assets.
• B) likelihood of financial distress is high.
• C) firm has too much debt.
• D) firm has no debt in its capital structure.

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Definitions:

Legitimizing Myths

Ideologies or widespread beliefs that justify the social arrangements and practices of a society, often serving to maintain power structures and inequalities.

Gender Inequality

The disparity in status, opportunities, and treatment between people based on their gender.

Traditionally Feminine

Characteristics or behaviors that are culturally associated with being female.

Traditionally Masculine

Characteristics or behaviors typically associated with or expected of men and boys by society, including strength, aggression, and emotional stoicism.