Return on assets is the most widely used technique for determining whether debt, stock, or a combination of debt and stock is the best alternative for raising capital to implement strategies.

Question

Quizplus · Accepted Answer

Return on assets (ROA) measures a company's profitability relative to its total assets, but it is not specifically used to determine the best capital structure for raising funds. Techniques like the weighted average cost of capital (WACC) or debt-to-equity ratio are more commonly used for such decisions.

Return on Assets Is the Most Widely Used Technique for Determining