All Else Being Equal,if Net Income Decreases

question 29

Multiple Choice

All else being equal,if net income decreases:

• A)EPS decreases and ROE increases.
• B)EPS and ROE both decrease.
• C)EPS increases and ROE decreases.
• D)EPS and ROE both increase.

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Definitions:

Improved Product

A product that has been enhanced in terms of quality, features, or performance compared to its previous versions.

Obsolete

Refers to products, technologies, or methods that are no longer used because newer ones have replaced them.

Highly Valued

Regarded with great importance, significance, or appreciation by individuals or society.

Competitive Price-Searcher Market

A market structure where firms have some power to set prices because their products are differentiated, but must consider the prices of competitors.