Last Year's Return on Equity Was 30

question 100

Multiple Choice

Last year's return on equity was 30%.This year the ROE has decreased to 20%,while the same amount of earnings was generated this year.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:

Truth Values

The valuation in logic that classifies statements into categories such as true, false, or, in some systems, indeterminate.

Short Form Truth Table

A condensed version of a truth table that only focuses on the rows that are critical for determining the validity of a logical argument.

Atomic Sentences

Simple sentences that contain no logical connectors and express a single complete thought or proposition.

Truth Values

The assessment of whether a statement is true or false in the field of logic.