Chaity Company's return on equity (ROE) was 11.4% in 200A and 13.1% in 200B. The increase in this ratio could be caused by which of the following ?

A An increase in the relative portion of stockholders equity to fund assets.
B An increase in net profit margin.
C A decrease in net profit margin.
D A decrease in the asset turnover ratio.

Correct Answer: An increase in net profit margin.

Bissoy MCQ

Related Questions

If a company's return on equity (ROE) ratio increase from one year to the next, the most likely cause is :
Which of the typically following will cause an increase in return on equity (ROE) as long as expenses do not grow faster than revenue ?
What is the opposite gender for 'Roe'?
Sir Thomas Roe came to India with a letter from the British Monarch

Next steps