Which One of the Following Changes Will Provide an Increase

question 40

Multiple Choice

Which one of the following changes will provide an increase in a firm's ROE?

• A) A decrease in the profit margin
• B) An increase in the interest rate
• C) An increase in equity
• D) A decrease in the tax rate

---

Definitions:

Majority

More than half of a total number or quantity; often used in the context of votes, opinions, or demographics.

Independent

A term in statistics and research denoting a variable that is manipulated or controlled in an experiment to observe its effect on the dependent variable.

Weekly Income

The total amount of money earned or received by an individual or entity in one week.

Standard Deviation

An indicator of the spread or dissimilarity among a group of numbers, showing the extent to which these numbers vary from the average.