Which of the Following Is True of a Firm That

question 98

Multiple Choice

Which of the following is true of a firm that has no debt in its capital structure?

• A) Its return on equity (ROE) will be greater than its return on asset (ROA).
• B) Its return on equity (ROE) will be lesser than its return on asset (ROA).
• C) Its return on equity (ROE) will be equal to its return on asset (ROA).
• D) None of the above.

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Definitions:

Split-Half Reliability

A measure of internal consistency, often ascertained by comparing responses on odd-numbered test items with responses on even-numbered test items and seeing if the scores for these responses are correlated.

Coefficient Alpha

A method for evaluating internal consistency, calculated by averaging the intercorrelations of all the items on a given test. The higher the coefficient alpha, the higher the internal consistency.

Structural Abnormalities

Physical changes or anomalies in the body's structures, often identified through medical imaging or physical examination.