If a Firm's Return on Investment, I

question 65

Multiple Choice

If a firm's return on investment, i.e., earnings after taxes divided by total assets, is 7%, and the firm has no preferred stock financing, it is

• A)possible that its return on stockholders' equity is 10%.
• B)possible that its return on stockholders' equity is 5%.
• C)not possible for its debt-to-equity ratio to be 1.0.
• D)not possible for its net profit margin to be 7%.

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Definitions:

Loss Of Identity

The experience of losing or struggling with one's sense of self, often due to major life changes or personal crises.

Cohabitation

The practice of cohabiting and engaging in a sexual partnership without the legal bond of marriage.

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Laws that provide legal recognition and rights to couples, similar to marriage, but without the title.

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