Which would increase a firm's return on equity? A. Issuance of 12% bonds and investing the proceeds to earn more than 12%. B. Increasing the size of cash dividends to shareholders C. Increase in the firm's price earnings ratio D. Increase in market price of the firm's ordinary share E. none of the above

Which would increase a firm's return on equity? A. Issuance of 12% bonds and investing the proceeds to earn more than 12%. B. Increasing the size of cash dividends to shareholders C. Increase in the firm's price earnings ratio D. Increase in market price of the firm's ordinary share E. none of the above

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Description: Which would increase a firm's return on equity?A. Issuance of 12% bonds and investing the proceedsto earn more than 12%.B. Increasing the size of cash dividends to shareholders.C. Increase in the firm's price earnings ratioD. Increase in market pric

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter3: Evaluation Of Financial Performance

Section: Chapter Questions

Problem 12P

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Which would increase a firm’s return on equity?A. Issuance of 12% bonds and investing the proceeds to earn more than 12%.B. Increasing the size of cash dividends to shareholders.C.Increase in the firm’s price earnings ratioD. Increase in market price of the firm’s ordinary share
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