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tester [92]
3 years ago
9

If a firm produces a return on assets of 15 percent and also a return on equity of 15 percent, then the firm:

Business
1 answer:
dem82 [27]3 years ago
8 0

Answer:

No debt of any kind.

Explanation:

Then the firm has “no debt of any kind” because the company has the equity multiplier ratio is 1.

We have given the return on assets is 15 % and the same return is on the equity that is 15%.

Thus, the equity multiplier ratio can be calculated by dividing the total assets / total equity.

Equity mulitplier ratio = Total Assets / Total equity.

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