Respuesta :
The correct option is (c); financed by all equity.
What is ROA of a firm?
Return on assets (ROA) is a metric for gauging how effectively a business uses its assets to make money.
Some key feature of return of assets are-
- ROA is a metric that managers, analysts, and investors use to assess a company's financial standing.
- This profitability ratio illustrates the rate of growth in profits produced by an organization's assets.
- The corporation is doing a good job of boosting its profits with each investment dollar it makes if its ROA increases over time.
- A declining ROA is a warning indicator that the company may be in jeopardy since it may have overinvested in assets that have failed to generate revenue growth.
What is ROE of a firm?
The ratio of a company's net income to the equity of its shareholders is known as return on equity (ROE). A company's profitability and the effectiveness of its revenue generation are measured by its return on equity (ROE).
Some key features of return equity-
- A high ROE is desired by investors since it shows that the company is making good use of its resources.
- A return on equity of between 15 and 20 percent is typically seen as favorable.
- You may determine a company's efficiency in utilising its investors' funds to produce profits by comparing a public company's net earnings to the equity stakes of its shareholders.
- In other words, ROE displays, as a percentage, the amount of profit the company makes from each dollar of shareholder ownership.
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