When Will Return on Equity Equal Return on Capital

question 47

Multiple Choice

When will return on equity equal return on capital?

• A)whenever the firm has equal debt and equity financing.
• B)whenever the firm has no interest payments on debt.
• C)whenever the value of the firm's assets exceeds the value of its equity.
• D)ROE will never equal ROC.

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Definitions:

Birth Order

The order in which a person is born in their family, which is often considered to impact personality, intelligence, and other traits.

Standard Error

Represents the standard deviation of the sampling distribution of a statistic, most often the mean.

Independent Random Samples

Samples selected from a population in such a way that each individual sample is chosen randomly and independently of each other.

Population Means

The average value of a numerical characteristic in a population, representing the central tendency of the population.