Question: 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

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 ratio is 1.00.

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:

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...

Q:

Horizontal Analysis Net Product Sales Net Service Sales Total Net Sales Operating Expenses Operating Income Income Before Taxes Income Taxes Net Income Earnings Per Share (Basic) 2017 118,573 59,293...

Q:

Urgent please calculate the following ratios show your calculations and briefly explain which each means: - inventory day sales -accounts receivable day sales - return on assets -ROA - Return On...

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:

Problem: 17.6 Examine the industry average ratios given in problems 17.4 and 17.5. Explain why the ratios are different between the managed care and nursing home industries. Ratio Managed Care...

Q:

C NgbUppbjfptcyRZXXX Homework Help C Suppose A Firm Make X C Suppose A Firm Make x ImHNgbDppbjFJptcvRZXrzQSWNG?projector=1&messagePartid=0.1 Mail Online s... 154pm.docx Open with Google Docs 1 Q7 [10...

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:

Calculate the total interest paid on 40 year loan w 15% down payment. Calculate the total interest paid on 20 year loan w 14% down payment. Question 2 of 4 (1 point) Apply: Compare mortgages 1 You...

Q:

What problems are associated with mistargeted communications? Why do they occur?

Q:

Question 1 1 : Holding Period Returns [ 5 Points ] Assume that 4 5 0 shares of a stock are purchased at 5 6 8 . 9 4 per share and sold one year later at $ 7 7 . 1 5 per share. A dividend of $ 2 . 4 0...

Q:

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".