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1.) To stockholders, the larger the net income, the greater the likelihood of- a. dividends b. the company will purchase treasury stock c. the stock
1.) To stockholders, the larger the net income, the greater the likelihood of-
a. dividends
b. the company will purchase treasury stock
c. the stock price decreasing
d. all of the above
2.) A company has a return on assets of 8%. Return on sales are 4%. The leverage ratio is 3.0. Following DuPont analysis, what is return on equity?
a. 12%
b. 4%
c. 8%
d. 24%
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