Acme Consolidated Has a Return on Equity of 12

question 23

Multiple Choice

Acme Consolidated has a return on equity of 12%.If Acme distributes 60% of earnings as dividends, then we would expect the common shareholders' investment in the firm and the value of the ordinary shares to grow by

• A)4.80%.
• B)7.20%.
• C)12%.
• D)6%.

---

Definitions:

Bureaucracies

Organized administrative systems in which tasks and responsibilities are divided among various offices and departments, characterized by hierarchical structure, fixed rules, and a focus on procedural efficiency.

Symbolic Interaction Theory

is a sociological perspective that focuses on how individuals use symbols and their meanings to create and maintain social reality through their interactions.

Primary Groups

Small social groups whose members share close, personal, enduring relationships, such as families and close friends.

Secondary Groups

Secondary groups are larger, more formal social groups in which the personal, emotional connections are weaker, and relationships are often temporary and goal-oriented.