What Effects Do Increases in Plant Assets Have on ROI

question 82

Multiple Choice

What effects do increases in plant assets have on ROI?

• A)An increase in controllable margin which increases ROI
• B)A reduction of ROI
• C)An increase in ROI
• D)Unable to determine without the dollar amount of controllable margin known

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Definitions:

Stockholders' Equity

Stockholders' Equity is the residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest of shareholders.

Paid-in Capital

The total amount of money that shareholders have invested in a company through the purchase of its stock, not including the stock's par or face value.

Retained Earnings

Retained earnings are the portion of a company's profits that are kept or retained within the company for reinvestment in business operations, rather than being paid out as dividends to shareholders.

Retained Earnings

The portion of a company’s profits that is kept or retained and not paid out as dividends to shareholders, often used for reinvestment.