If a Firm Produces a 10% Return on Assets and Also

question 113

Multiple Choice

If a firm produces a 10% return on assets and also a 10% return on equity,then the firm:

• A) has no debt of any kind.
• B) is using its assets as efficiently as possible.
• C) has no net working capital.
• D) also has a current ratio of 10.
• E) has an equity multiplier of 2.

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Definitions:

Motion Picture

A sequence of images displayed rapidly to create the illusion of movement, commonly known as a movie or film.

Producers

Organisms in an ecosystem that produce their own food from inorganic substances, forming the base of the food chain.

Director

A person who supervises the creative aspects of a project or organization, especially in film, theatre, or corporate environments.

Direct Quotations

The exact repetition of someone's words within another text, typically accompanied by quotation marks to signify the citation.