If a company has no liabilities, its return on equity will equal its return on assets.

Name: If a company has no liabilities, its return on equity will equal its return on assets.
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Question

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If a company has no liabilities, its assets would equal its equity. Therefore, the return on equity (net income divided by equity) would be the same as the return on assets (net income divided by assets).

If a Company Has No Liabilities, Its Return on Equity