Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company's Return on assets has increased from the previous period, yet its Return on equity has decreased. Which of the following is the most

A company's Return on assets has increased from the previous period, yet its Return on equity has decreased.

Which of the following is the most likely explanation for this?

Group of answer choices:

An increase in the company's share price.

An increase in the company's mark-up.

A significant transfer from Retained profits to Reserves during the period

A decrease in the company's debt ratio.

An increase in the corporate tax rate.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting concepts and applications

Authors: Albrecht Stice, Stice Swain

11th Edition

978-0538750196, 538745487, 538750197, 978-0538745482

More Books

Students also viewed these Accounting questions

Question

=+b) What might you consider doing next?

Answered: 1 week ago

Question

=+e. User: uses the item or service.11

Answered: 1 week ago