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%.
Correct Answer:
Verified
Correct Answer:
Verified
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