Grantsiarah4953 Grantsiarah4953
  • 07-08-2020
  • Business
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If a company produces a return on assets of 14 percent and also a return on equity of 14 percent, then the firm:

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topeadeniran2 topeadeniran2
  • 12-08-2020

Answer: has an equity multiplier of 1.0.

Explanation:

From the question, we are informed that a company produces a return on assets of 14 percent and also a return on equity of 14 percent, this shows that the company doesn't have any debt.

Also, since the return on assets is 14 percent and also the return on equity is 14 percent, this shows that the equity multiplier will be 14/14 = 1.

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