A Firm with a Debt Equity Ratio of 1/3, Return

question 2

Multiple Choice

A firm with a debt equity ratio of 1/3, return on assets of 15%, and return on debt of 10% will have return on equity of:

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

---

Definitions:

True Owner

The individual or entity that holds the legitimate rights to ownership or possession of property.

Finder

An individual who locates and takes possession of an item that was lost or unclaimed.

Confusion

The state of being bewildered or unclear in one's mind about something.

Accession

The process by which personal property becomes the property of another, usually through improvement or addition.