QUESTION 31 Regarding the tax treatment of payments to securities holders, it is true that interest and preferred stock dividends are not tax-deductible, while common stock dividends are tax-deductible interest and preferred stock dividends are tax-deductible, while common stock dividends are not tax-deductible common stock dividends and preferred stock dividends are not tax-deductible, while interest is tax-deductible common stock dividends and preferred stock dividends are tax-dewuctible, while interest is not tax-deductible Suppose a firm's total assets turnover ratio falls from 2,0 to 0.9, but at the same time its profit margin rises from 9% to 10%, and its debt increases from 40% of total assets to 60%. Under these conditions... the ROE will decrease. O the ROE will increase the ROE will remain the same. Othere is not enough information about what happens to ROE. equity mutiplier will decrease