Which One of the Following Changes Will Provide an Increase

question 55

Multiple Choice

Which one of the following changes will provide an increase (if only in the short-run) in a firm's ROE?

• A)a decrease in the profit margin.
• B)an increase in the dividend-payout ratio.
• C)an increase in equity.
• D)an increase in tax rates.

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Definitions:

English Major

An academic field of study that focuses on literature, language, and writing in the English language.

Expected Utility

Sum of the utilities associated with all possible outcomes, weighted by the probability that each outcome will occur.

Income

The money a person or business receives in exchange for providing a good or service or through investing capital.

Research

The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.