Question: 20 Which statement is correct if the return on assets (ROA) equals the return on equity (ROE)? The net profit margin = ROA = ROE

20
Which statement is correct if the return on assets (ROA) equals the return on equity (ROE)?
The net profit margin = ROA = ROE
The equity ratio is 50%.
The debt-to-equity ratio is 1.00.
The debt ratio is zero.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Which statement is correct if the return on assets (ROA) equals the return on equity (ROE)? The equity ratio is 50%. The net profit margin = ROA = ROE The equity ratio is 100%. The debt-to-equity...

Q:

macys and nordstroms b. Calculate the five categories of financial ratios as we learned in class for both firms. Discuss changes over time that are you can relate to the stock's valuation. For...

Q:

QUESTION 3 (20 MARKS) The MAJU JAYA Dairy Farm's Financial Position and Performance are shown in Table below. Relative rating of actual measure Category and Measure Actual Results Vulnerable Strong...

Q:

QUESTION 3 (20 MARKS) The MAJU JAYA Dairy Farm's Financial Position and Performance are shown in Table below. Relative rating of actual measure Category and Measure Actual Results Vulnerable Strong...

Q:

Ratio What does it measure? What does it tell you? Generally, would a higher or lower For example, does it tell you about operating value be better? efficiency - cost control; management What would a...

Q:

Use the format shown in worksheet 5-Research Summary to prepare a two-page summary of your analysis.This conclusion should summarize your research in a clear and concise manner.As part of this...

Q:

how do I create this with worksheets 1-5 on the power point for my amazon company Part 2:The Power Point presentation Purpose:Prepare and deliver a presentation titled, Would you advise a friend to...

Q:

Use the format shown in worksheet 5-Research Summary to prepare a two-page summary of your analysis.This conclusion should summarize your research in a clear and concise manner.As part of this...

Q:

TABLE 5.2 Traditional decomposition of ROE Ratio Net profit margin (ROS) Asset turnover = Return on assets (ROA) Financial leverage = Return on equity (ROE) TABLE 5.7 Liquidity ratios Ratio Current...

Q:

TABLE 5.2 Traditional decomposition of ROE Ratio Net profit margin (ROS) Asset turnover = Return on assets (ROA) Financial leverage = Return on equity (ROE) TABLE 5.7 Liquidity ratios Ratio Current...

Q:

A firm has invested $400,000 in car-washing equip- ment. They will depreciate the equipment by 60% bonus depreciation with the balance using 5-year MACRS, assuming a $50,000 salvage value at the end...

Q:

Here are selected 2012 transactions of Eghan Corporation. Jan. 1 Retired a piece of machinery that was purchased on January 1, 2002. The machine cost $62,000 and had a useful life of 10 years with no...

Q:

The liquidity preference theory of term structure says investors have a preference for short - term securities . True False

Q:

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...