Suppose during the year a company makes a profit manufacturing and selling glow-in-the-dark socks and retains some of its earnings. Next year it manufactures and sells exactly the same amount, at the same costs per unit, same fixed costs, etc. What is its ROE for the second year compared to the first?
a) higher
b) lower
c) the same
D) none of the above
Answer: b) lower
You might also like to view...
The last dividend paid on Minsky Corp. stock was $3 per share. If Minsky investors require a 10% return, what should the share price be if the dividend payments are not expected to change?
A) $3 B) $300 C) $33 D) $30 E) $40
Yasin, a professional in information technology services, received an e-mail from Sabri in the Sales department. The e-mail read: "Yasin, I need you to do something for me. Query sales data for the second quarter and pull out all of the invoices that include iPhones selling with a discount. I need a count and the total amount of the discount. Thanks, Sabri." What type of report is Sabri asking
Yasin to prepare? A) Scheduled report. B) Special-purpose analysis report. C) Triggered exception report. D) Demand report.