When would the return on equity (ROE) definitely equal the return on assets (ROA) ?
A) Whenever a firm has no long-term debt.
B) Whenever a firm's debt-to-equity ratio is equal to one.
C) Whenever a firm's long-term debt ratio is equal to zero.
D) Whenever a firm's return on equity is equal to 100%.
E) Whenever a firm's total debt ratio is equal to zero.
Correct Answer:
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