Which One of the Following Will Increase the Return on Equity

question 178

Multiple Choice

Which one of the following will increase the return on equity as computed using the Du Pont identity given that all else is held constant?

• A) A decrease in total equity
• B) A decrease in sales
• C) A decrease in net income
• D) An increase in total assets
• E) An increase in costs

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Definitions:

Consumer Purchases

Transactions where individuals or households buy goods and services for personal use.

Personal Influence

indicates the effect an individual's characteristics, behaviors, or opinions have on others' attitudes or actions.

Word-of-Mouth

A form of marketing where information about products or services is transmitted from one person to another through verbal or written recommendations.

Countervailing Duties

Tariffs levied on imported goods to offset subsidies made to producers of these goods in their home countries.