Last Year's Return on Equity Was 30

question 49

Multiple Choice

Last year's return on equity was 30%.This year the ROE has decreased to 20% even though the firm's earnings equaled last year's earnings.The firm has no preferred stock.What caused the decrease?

• A)equity decreased by 10%.
• B)equity decreased by 50%.
• C)equity increased by 10%.
• D)equity increased by 50%.

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Definitions:

Genetic Code

A set of rules used by living cells to translate information encoded within genetic material (DNA or mRNA sequences) into proteins.

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells that carry genes made of DNA.

DNA Molecule

The carrier of genetic information in cells, consisting of two long strands that coil around each other to form a double helix.

Genetic Codes

The set of rules by which information encoded in genetic material (DNA or RNA sequences) is translated into proteins by living cells.