Quiz Ch 04 – T/F Debt Ratio from ROE and ROA
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: Given a firm’s ROE of 9% and ROA of 6%, with financing limited to short-term debt, long-term debt, and common equity, where assets match total invested capital, the total debt to total capital ratio must be 50%.