If a Firm Produces a Twelve Percent Return on Assets

question 35

Multiple Choice

If a firm produces a twelve percent return on assets and also a twelve percent return on equity,then the firm:

• A)may have short-term, but not long-term debt.
• B)is using its assets as efficiently as possible.
• C)has no net working capital.
• D)has a debt-equity ratio of 1.0.
• E)has an equity multiplier of 1.0.

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Definitions:

Equipotentiality

The idea that any part of a particular functional area of the brain can perform its associated function, emphasizing brain plasticity.

Amnesia

A condition characterized by the loss of memories, such as facts, information, and experiences, which can be temporary or permanent.

Retrograde Amnesia

A loss of memory-access to events that occurred or information that was learned before an injury or the onset of a disease.

Anterograde Amnesia

A condition characterized by the inability to form new memories following the onset of the condition.