Question

6. If a firm produces a 12% return on assets and also a 12% return on equity, then the firm: A. Has no debt of any kind. B. Is using its assets as efficiently as possible. C. Has no net working capital. D. Also has a current ratio of 10. E. Has an equity multiplier of 2. F. None of these

Answer 1

F

Step-by-step explanation:

None of these. This is because the answer is that it has an equity multiplier of 1