Question 4 A firm\'s ROE will be equal to their ROA if the firm uses no equity f
ID: 2626940 • Letter: Q
Question
Question 4
A firm's ROE will be equal to their ROA if
the firm uses no equity financing
the firm uses only equity financing
a firm's ROE will never equal their ROE
a firm's ROE will always equal their ROE
4 points
Question 5
Firms A, B and C all show a large increase in the cash account on their balance sheet from 2006 to 2007. Which firm would you prefer to invest in, assuming that you are a long-term investor?
Firm A which generated the cash by a large positive cash flow from operating activities.
Firm B which generated the cash by a large positive cash flow from investing activities
Firm C which generated the cash by a large positive cash flow from financing activities
4 points
Question 6
Which of the following is a source of externally generated equity financing?
issuing new corporate bonds
issuing new shares of common stock
retained earnings
bank loans
collecting all of their outstanding accounts receivable
the firm uses no equity financing
the firm uses only equity financing
a firm's ROE will never equal their ROE
a firm's ROE will always equal their ROE
Explanation / Answer
A firm's ROE will be equal to their ROA if
a firm's ROE will always equal their ROE
Which of the following is a source of externally generated equity financing?
issuing new shares of common stock
Firms A, B and C all show a large increase in the cash account on their balance sheet from 2006 to 2007. Which firm would you prefer to invest in, assuming that you are a long-term investor?
Firm A which generated the cash by a large positive cash flow from operating activities
issuing new shares of common stock
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