For a Firm That Has Both Debt and Equity

question 77

Multiple Choice

For a firm that has both debt and equity,

• A) ROE > ROA.
• B) ROE < ROA.
• C) ROE = ROA
• D) None of the above.

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Definitions:

Affective Commitment

An employee's emotional attachment to, identification with, and involvement in an organization.

Continuance Commitment

The degree to which employees feel committed to their organizations due to the costs associated with leaving.

Continuance Commitment

An employee's psychological attachment to an organization based on the costs that they perceive associated with leaving it.

Normative Commitment

The feeling of obligation an individual has to continue in an organization because of their personal values, ethics, or commitments.