If a Firm Has a Positive Tax Rate,a Positive Operating

question 23

Multiple Choice

If a firm has a positive tax rate,a positive operating ROA,and the interest rate on debt is the same as the operating ROA,then operating ROA will be _________.

• A) greater than zero but it is impossible to determine how operating ROA will compare to ROE
• B) equal to ROE
• C) greater than ROE
• D) less than ROE

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Definitions:

Year Ended

Refers to the end of a 12-month financial accounting period or fiscal year for an organization.

Mass Media

Channels of communication, such as television, newspapers, and the internet, that reach a large audience simultaneously.

Functionalists

Theorists who view society as a complex system whose parts work together to promote solidarity and stability.

Mass Media

Various forms of communication, such as television, radio, newspapers, and the Internet, used to reach a large audience.