A Firm with a Debt-Equity Ratio of 1/2,return on Assets

question 14

Multiple Choice

A firm with a debt-equity ratio of 1/2,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%.

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Definitions:

Free Associate

A psychoanalytic process where the patient speaks freely to reveal unconscious thoughts and feelings.

Psychotherapist

A trained professional who treats mental health problems and emotional difficulties through talking and psychological techniques.

Psychodynamic Approach

An approach to psychology emphasizing unconscious thought, the conflict between biological drives (such as the drive for sex) and society’s demands, and early childhood family experiences.

Unconscious Conflicts

Internal struggles arising from unresolved, often repressed, desires or impulses that can lead to mental disturbances or disorders according to psychoanalytic theories.