Question: When is the return on assets equal to the return on equity? A. When the current ratio of the firm equals 1. B. When the

When is the return on assets equal to the return on equity?

A.

When the current ratio of the firm equals 1.
B.

When the profit margin is equal to the equity multiplier.
C.

When the firm only issues equity, and takes on no debt.
D.

When the firm issues no dividends for a given time period.
E.

When the equity multiplier is zero.
F.

When the firm issues equal amounts of long term debt and common stock.

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