If a Firm's ROA and ROE Are Equal, It Can

question 46

Multiple Choice

If a firm's ROA and ROE are equal, it can be concluded that the firm is:

• A) losing money.
• B) liquid enough to pay some extra dividends.
• C) financed by all equity.
• D) financed by a high proportion of debt.

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Definitions:

Workplace Decisions

Choices and judgments made regarding professional matters, tasks, or policies within a working environment.

Stress

A condition or feeling experienced when a person perceives that demands exceed the personal and social resources the individual is able to mobilize.

Perception Of Ability

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Stressful Event

A situation or occurrence that triggers a psychological or physical reaction.