When the Return on Equity Is Equal to the Return

question 149

Multiple Choice

When the return on equity is equal to the return on capital employed:

• A)the return on borrowed money equals the cost of borrowing the money.
• B)the firm has optimized its financial leverage.
• C)the firm is unleveraged.
• D)All of the above

---

Definitions:

Melatonin

A hormone that aids regulation of circadian rhythms; bright light reduces production and darkness increases production.

Melatonin

A hormone produced by the pineal gland that regulates sleep and wakefulness, often associated with the body's circadian rhythms.

Slow-Wave Sleep

Stages 3 and 4 of deep sleep, where a person is substantially less conscious and is hard to awaken; EEGs reveal large, regular delta waves.

Beta Waves

A type of brain wave pattern associated with active, alert consciousness and cognitive processing.