A Firm Has an ROE of - 2%,a Debt/equity Ratio

question 88

Multiple Choice

A firm has an ROE of - 2%,a debt/equity ratio of 1.0,a tax rate of 0%,and an interest rate on debt of 10%.The firm's ROA is _______.

• A) 4%
• B) 6%
• C) 8%
• D) 10%
• E) none of these

---

Definitions:

Companionate Family

pertains to a family model based on deep affection, friendship, and mutual respect, rather than solely on romantic love or traditional duty.

Extended Family

Extended family includes not just parents and children but also other relatives such as grandparents, aunts, uncles, and cousins, often living close by or within the same household.

Conjugal Family

A family unit that is formed through marriage, consisting of spouses and their children.

Immigrant Women

Female individuals who have relocated from their country of origin to another country, often facing unique challenges and experiences.