When Is the Return on Assets Equal to the Return

question 29

Multiple Choice

When is the return on assets equal to the return on equity?

• A) When the current ratio of the firm equals 1.
• B) When the firm issues equal amounts of long term debt and common stock.
• C) When the firm issues no dividends for a given time period.
• D) When the firm only issues equity to finance its borrowing.

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Definitions:

Overgeneralize

To apply a rule or conclusion too broadly without sufficient evidence or in inappropriate situations.

Grammatical Rules

Are the guidelines that govern how words and phrases are combined to form sentences in a language.

2- To 3-Year-Old

A developmental stage in early childhood characterized by rapid physical growth, cognitive development, and the emergence of linguistic skills.

Deaf Child

A child with a significant hearing impairment that affects their ability to process linguistic information through hearing.