Post Utme Bsu 2017 Commerce Question 22

Practice objective / multiple choice question 22 from the 2017 Post Utme Bsu Commerce examination.

Post Utme Bsu 2017 Commerce Objective / Multiple Choice
Question 22 POST_UTME_BSU • 2017 • COMMERCE • objective

A company's financial statements show that its net income has increased by 15% over the past year. However, its return on equity (ROE) has decreased by 5%. What could be the reason for this decrease in ROE?

Answer Options

A. Increase in debt-to-equity ratio
B. Decrease in operating expenses
C. Increase in dividend payout ratio
Correct Answer D. Decrease in interest coverage ratio
Correct Answer
D
Correct Option:
Decrease in interest coverage ratio

About This Question

This is Post Utme Bsu 2017 Commerce Question 22. It is one of the objective questions from the 2017 Post Utme Bsu Commerce examination.

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