Kizspy | Question: 42
(Choose 1 answer)
Which of the following is true of a firm that has no debt in its capital structure?
A. Its return on equity (ROE) will be greater than its return on asset (ROA).
B. Its return on equity (ROE) will be lesser than its return on asset (ROA).
C. Its return on equity (ROE) will be equal to its return on asset (ROA).
D. Its return on equity (ROE) will not be related to return on asset (ROA).
