Which of the following statements is most correct?
A) If a company's ROA is 7 percent, then its ROE must be greater than or equal to 7 percent.
B) The BEP and ROA will be the same for a company with no debt in its capital structure.
C) A company with a low debt ratio will have a high equity multiplier.
D) Both statements a and c are correct.
E) None of the statements above is correct.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is most correct?
A) If a company's ROA is 7 percent, then its ROE must be greater than or equal to 7 percent.
B) The BEP and ROA will be the same for a company with no debt in its capital structure.
C) A company with a low debt ratio will have a high equity multiplier.
D) Both statements a and c are correct.
E) None of the statements above is correct.

Which of the Following Statements Is Most Correct