Question
Which one of the following options is usually an appealing way to try to increase a company's ROE? A) Pursuing whatever financial actions it takes
Which one of the following options is usually an appealing way to try to increase a company's ROE?
A) Pursuing whatever financial actions it takes to keep the company's debt-to-assets ratio below 0.30
B )Pursuing actions to increase the company's retained earnings
C) Not paying a dividend so as to conserve cash for use in paying down the company's bank loans as fast as possible; once existing loans are paid off, dividends can then be increased as much as $0.25 annually
D) Pursuing actions to boost the company's net profits by healthy amounts every year and, further, to maintain a high dividend payout ratio (so as to avoid increasing retained earnings by more than very modest amounts)
E) Pursuing actions to boost the company's total profits, avoiding the payment of dividends, and using all available cash to pay off bank loans and avoid taking out any further bank loans
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Managing Business Ethics Making Ethical Decisions
Authors: Alfred A. Marcus, Timothy J. Hargrave
1st Edition
1506388590, 978-1506388595
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