All of the Following Are Economic Factors That Will Decrease

question 11

Multiple Choice

All of the following are economic factors that will decrease a firm's value-to-book ratio over time except:

• A) decreasing competition that drives the firm's ROCE down
• B) increasing systematic risk that increases the firm's equity cost of capital over time
• C) a loss of competitive advantage through changes in technology or other factors
• D) retaining earnings or issuing equity capital and deploying the capital in activities that generate ROCE levels that are lower than current levels

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Definitions:

Final-Offer Arbitration

A dispute resolution process where each party presents their best offer, and an arbitrator chooses one of the offers with no alterations as the resolution.

Cooling-Off Effect

A period designed to allow parties in a dispute to calm emotions and reconsider their positions.

Arbitration

A method of dispute resolution involving a neutral third party who makes a binding decision.

Advisable

Worthy of being recommended or suggested as a prudent or wise course of action.