When Is the Return on Assets Equal to the Return

question 3

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:

Drawsheet

A sheet placed under patients, allowing healthcare workers to easily reposition them in bed.

Manual Lift

The act of physically lifting or moving an object or person using human strength, without the aid of mechanical devices.

Assess Weight

The process of measuring and evaluating an individual's body weight, often as part of a health examination or fitness assessment.

Delegate Task

The act of assigning responsibilities or duties to someone else, often to manage time and resources more effectively.