If a firm’s net sales (i.e., revenue) increases, but total assets, its debt ratio, and its net profit margin and remain the same as they were before net sales increased , the firm’s: a.ROE would not change. b. ROE could either increase or decrease depending on the interaction between the equity multiplier and the days payable ratio. c.ROE would increase. d.ROE would decrease. e. There is insufficient information to determine the effect on ROE
If a firm’s net sales (i.e., revenue) increases, but total assets, its debt ratio,
and its
net profit margin and
remain the same as they were before
net sales increased
, the firm’s:
a.ROE would not change.
b.
ROE could either increase or decrease depending on the interaction between the equity multiplier and
the days payable ratio.
c.ROE would increase.
d.ROE would decrease.
e.
There is insufficient information to determine the effect on ROE
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