Which of the Following Actions Would Likely Increase the Return

question 35

Multiple Choice

Which of the following actions would likely increase the Return on Equity (ROE) ?

• A)An increase in the cost of goods sold
• B)The purchase of treasury stock
• C)Issuing shares of preferred stock
• D)An increase in the income tax rate

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Definitions:

Creditors

Individuals or institutions to whom money is owed.

Duty

A legal or moral obligation to do something or to refrain from doing something.

Creation

The action or process of bringing something into existence, often referred to in various contexts such as art, invention, and religious narratives.

Small Companies

Businesses with a relatively small number of employees, financial assets, or market shares, often defined by specific legal criteria.