Last Year's Return on Equity Was 30

question 3

Multiple Choice

Last year's return on equity was 30%.This year the ROE has decreased to 20% even though the firm's earnings equaled last year's earnings.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:

Translocation

Movement of a chromosomal segment from one chromosome to another nonhomologous chromosome, leading to abnormalities—e.g., Down syndrome.

XO Genotype

A genetic condition characterized by the presence of a single X chromosome and no second sex chromosome, leading to Turner syndrome in humans.

Turner Syndrome

A chromosomal disorder affecting females, characterized by the presence of a single X chromosome, leading to various physical and developmental issues.

Poly-X Female

A genetic condition in females characterized by the presence of more than two X chromosomes, leading to various physical and developmental features.