When a profitable business has no mandated loan capital but there are non-mandated liabilities a. the return on equity always exceeds the return on total capital b. the return on equity always equals the return on total capital c. the return on equity may be equal to the return on total capital d. the return on equity always lags behind the return on total capital

When a profitable business has no mandated loan capital but there are non-mandated liabilities a. the return on equity always exceeds the return on total capital b. the return on equity always equals the return on total capital c. the return on equity may be equal to the return on total capital d. the return on equity always lags behind the return on total capital

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The calculations in step 2 is very hard to read. Can it be written more clearly, please?
True or false?
When a profitable business has no mandated loan capital but there are non-mandated liabilities a. the return on equity always exceeds the return on total capitalb. the return on equity always equals the return on total capitalc. the return on equity may be equal to the return on total capitald. the return on equity always lags behind the return on total capital choose one