Question: When would the return on equity equal to the the return on assets? Assume that total assets are equal to $100. a. whenever (TOTAL LIABILITIES
When would the "return on equity" equal to the "the return on assets"? Assume that total assets are equal to $100.
a. whenever (TOTAL LIABILITIES divided by TOTAL ASSETS) is zero
b. whenever (TOTAL EQUITY divided by TOTAL ASSETS) is zero
c. whenever the firm has positive net income
d. whenever the firm pays no dividends
e. whenever the debt to equity ratio is one
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
