أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
A- increase equity B- decrease equity C- decrease income D- all answers are false
Return on Equity is calculated by the following formula
ROE = Net Income / Shareholders equity.
Assuming that the Net Income remains constant, then any decrease in Equity will increase the Return on Equity. Therefore the answer is B - decrease in equity will increase ROE.
