Which of the following statements about ROA is true?
A) ROA is useful for comparing companies in different industries.
B) ROA is the most important ratio for an equity investor.
C) ROA is useful for determining how the company financed its assets.
D) ROA reflects the risk inherent in a company.
Correct Answer:
Verified
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Q46: A company's optimal capital structure occurs when:
A)ROA
Q47: Use the following information for questions:
Consider
Q48: Use the following information for questions:
The
Q49: When a company's ROE is greater than
Q51: Changes in the profit margin ratio could
Q52: Use the following information for questions:
The
Q53: It is unattractive to borrow any further
Q54: Use the following information for questions:
Blue
Q55: Use the following information for questions:
The
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