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

---

Definitions:

Paralysis

The inability to control movement or sensation in some or all of the body, usually caused by sickness, toxins, or physical harm.

Stroke

A medical condition caused by the interruption of blood flow to the brain, leading to brain damage.

Rectum

The final section of the large intestine, terminating at the anus, where feces are stored before being excreted.

Cholecystectomy

A surgical procedure to remove the gallbladder.