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if a firm's roe is equal to 9% and its roa is equal to 6%, its equity multiplier must be 1.5. if a firm's roe is equal to 9% and its roa is equal to 6%, its equity multiplier must be 1.5. false true

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Ratio analysis involved analyzing financial statements to help appraise a firm's financial position and strength. The current and quick ratios help us measure a firm's liquidity. The current ratio measures the relationships of the firm's current assets to its current liabilities, while the quick ratio measures the firm's ability to pay off short-term obligations without relying on the sale of inventories.

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