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NEW QUESTION: 1
When a firm uses no debt,
A. all of these answers.
B. its business risk equals the market risk.
C. its financial risk equals its business risk.
D. its ROA equals its ROE.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
With no debt, total capital equals total equity, giving ROA = ROE. Note that without debt, financial risk is zero since financial risk is defined as the additional risk caused due to debt in the capital structure. Market risk is the systematic risk arising from the correlation of the firm's stock price with the market and is different from business risk.

NEW QUESTION: 2
How often does an OSPF router rebuild its routing table information?
A. Every 30 seconds
B. Every hour
C. Every 60 seconds
D. Every five minutes
E. Only when a change occurs
F. At a predetermined interval
Answer: E

Responses