A Firm Has an ROA of 8%,a Debt/equity Ratio of 0.5,its

question 53

Multiple Choice

A firm has an ROA of 8%,a debt/equity ratio of 0.5,its ROE is _________.

• A) 4%
• B) 6%
• C) 8%
• D) 12%

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Definitions:

Population Parameter

A numerical value that summarizes a characteristic of an entire population.

Statistical Inference

The process of drawing conclusions about a population's characteristics based on a sample drawn from it.

Populations

The entire group of individuals or items that statistical analysis is based upon.

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis, suggesting there is a significant difference or effect.