If a firm produces a 13 percent return on assets and also a 13 percent return on equity, then the firm:
-May have short-term, but not long-term debt.
-Is using its assets as efficiently as possible.
-Has no net working capital.
-Has a debt-equity ratio of 1.0.
-Has an equity multiplier of 1.0.
Answer: Has an equity multiplier of 1.0