Homework Answers
Answer
Correct answer is ''has an equity multiplier of 1''.
Return on equity=Net income/Total shaeholder's equity
Return on assets=Net income/Total Assets
When Return on equity and return on asset is same it means that Total Assets and total shareholder's equity is same.
which can be depicted by the below formula of equity multiplier.
Equity multiplier is a leverage ratio which is calculated as below
=Total Assets/Total shareholder's equity
If Total assets and Total shareholder's equity are same, then equity multiplier will be 1.
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Question 4 7.5 pts A firm has the same return on assets as its return on...
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D Question 54 1 pts Beranek Corp has $695,000 of assets (which equal total invested capital),...
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Question 4 5 pts Company Xcurrently is an all-equity firm with an expected return of 6.6%....
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