When Will ROE Equal ROC

question 61

Multiple Choice

When will ROE equal ROC?

• 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.

---

Definitions:

Memory

The mental capacity or faculty of retaining and reviving facts, events, impressions, or previous experiences.

Signal Strength

A measure of the power level of a transmitted signal as received by a radio receiver or similar device.

Treisman

Anne Treisman was a cognitive psychologist renowned for her work in attention, notably the feature integration theory which describes how we perceive objects as wholes even when attention is distributed among the separate features.

Broadbent

Refers to Donald Broadbent, a psychologist known for his work in the field of information processing and attention theories.