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

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!