If a Firm Wishes to Retain the Same Return on Equity

question 5

Multiple Choice

If a firm wishes to retain the same return on equity when its net profit margin and total asset turnover has declined, it must ____.

• A) decrease its equity multiplier
• B) increase its equity multiplier
• C) increase sales and increase assets
• D) reduce sales and increase assets

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Definitions:

Narcissistic Personality Disorder

A mental condition characterized by a long-term pattern of exaggerated self-importance, need for admiration, and a lack of empathy for others.

Obsessive-Compulsive Personality Disorder

A personality disorder characterized by a preoccupation with orderliness, perfectionism, and control, at the expense of flexibility, openness, and efficiency.

Schizotypal Personality Disorder

A mental disorder characterized by severe social anxiety, thought disorder, paranoid ideation, derealization, transient psychosis, and often unconventional beliefs.

Antisocial Personality Disorder

A mental health disorder characterized by a long-term pattern of disregard for, or violation of, the rights of others.