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Which of the following events would not improve (increase) a companys return on equity? (Assume all else remains the same.) a. Retirement of long-term debt

Which of the following events would not improve (increase) a companys return on equity? (Assume all else remains the same.)

a. Retirement of long-term debt with cash
b. Sale of common stock for cash
c. Reduction in operating expenses

Select one:

b

a and b

a and c

None of the events would improve a companys return on equity.

a

c

b and c

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