When is the return on assets equal to the return on equity? *O When the company only issues equity to finance its borrowing.O When the current ratio of the company equals 1.O When the company issues no dividends for a given time period.O When the company issues equal amounts of long-term debt and common stock.

Return on equity is the ratio which shows the earning capacity of the equity shareholders’ funds and…

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When is the return on assets equal to the return on equity? * When the 00

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 24MCQ: When analyzing a companys debt to equity ratio, lithe ratio has a value that is greater than one,...

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When is the return on assets equal to the return on equity? *
O When the company only issues equity to finance its borrowing.
O When the current ratio of the company equals 1.
O When the company issues no dividends for a given time period.
O When the company issues equal amounts of long-term debt and common stock.

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