BGL Enterprises increases its operating efficiency such that costs decrease while sales remain constant. As a result, given all else constant, the:
A. return on equity will increase.
B. return on assets will decrease.
C. profit margin will decline.
D. equity multiplier will decrease.
E. price-earnings ratio will increase
Answer: A. return on equity will increase.
Business
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Which organization provides leadership in unifying public relations practitioners worldwide under a common vision: "One profession, one voice"?
A. International Public Relations Association
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Investors generally don't like risk. Therefore, a typical investor
A) will only accept a zero return if the risk is zero. B) will not be induced to take on any risk. C) will only take on additional risk if he expects to be compensated in the form of additional return. D) will only take on the least risk possible.
Business