15. If a firm's Return on Assets (ROA) is equal to its Return on Equity (ROE), then the firm's O Internal Growth Rate must be equal to its Sustainable Growth Rate O Stock price must be equal to its earnings per share Retention ratio must be equal to its dividend yield O Net income must be equal to its operating cash flow O depreciation tax shield must be equal to its net income O Degree of operating leverage must be equal to the fixed costs.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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15. If a firm's Return on Assets (ROA) is equal to its Return on Equity (ROE), then the firm's
O Internal Growth Rate must be equal to its Sustainable Growth Rate
O tock price must be equal to its earnings per share
Retention ratio must be equal to its dividend yield
O Net income must be equal to its operating cash flow
O depreciation tax shield must be equal to its net income
O Degree of operating leverage must be equal to the fixed costs.
Transcribed Image Text:15. If a firm's Return on Assets (ROA) is equal to its Return on Equity (ROE), then the firm's O Internal Growth Rate must be equal to its Sustainable Growth Rate O tock price must be equal to its earnings per share Retention ratio must be equal to its dividend yield O Net income must be equal to its operating cash flow O depreciation tax shield must be equal to its net income O Degree of operating leverage must be equal to the fixed costs.
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