Which of the Following Is the LEAST Likely Explanation for a Firm's

question 60

Multiple Choice

Which of the following is the LEAST likely explanation for a firm's high ROE?

• A)The firm has very efficient use of its assets.
• B)The firm is growing.
• C)The firm is able to find investment opportunities that are very profitable.
• D)The firm enjoys high sales margins.

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Definitions:

Taxable Income

The portion of an individual's or organization's income that is subject to federal, state, or other forms of taxation.

Marginal Tax Rate

Marginal Tax Rate is the percentage of tax applied to your income for each tax bracket in which you qualify.

Federal Government Expenditures

Federal Government Expenditures refer to the total amount of money spent by the national government, including spending on defense, education, public safety, and social programs.

National Debt

The overall quantity of money that a country's ruling body has procured as loans from diverse origins.