Which of the Following Statements Is Correct

question 101

Multiple Choice

Which of the following statements is correct?

• A)If two firms have the same ROA, the firm with the most debt can be expected to have the lower ROE.
• B)An increase in the DSO, other things held constant, could be expected to increase the total assets turnover ratio.
• C)An increase in the DSO, other things held constant, could be expected to increase the ROE.
• D)An increase in a firm's debt ratio, with no changes in its sales or operating costs, could be expected to lower the profit margin.