Please answer with reason for all why the option is correct and why the other options are incorrect Please answer correct otherwise skip it   Which of the following strategies should improve the company's ROE? Check all that apply. MULTIPLE ANSWERS A. Increase the firm's bottom-line profitability for the same volume of sales, which will increase the company's net profit margin. B. Increase the interest rate on its notes payable or long-term debt obligations because it will reduce the company's net profit margin. C. Increase the cost and amount of assets necessary to generate each dollar of sales because it will increase the company's total assets turnover. D. Reduce the company's operating expenses, its cost of goods sold, and/or the interest rate on its borrowed funds because this will increase the company's net profit margin.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Please answer with reason for all why the option is correct and why the other options are incorrect
Please answer correct otherwise skip it

 

Which of the following strategies should improve the company's ROE?

Check all that apply. MULTIPLE ANSWERS

A. Increase the firm's bottom-line profitability for the same volume of sales, which will increase the company's net profit margin.

B. Increase the interest rate on its notes payable or long-term debt obligations because it will reduce the company's net profit margin.

C. Increase the cost and amount of assets necessary to generate each dollar of sales because it will increase the company's total assets turnover.

D. Reduce the company's operating expenses, its cost of goods sold, and/or the interest rate on its borrowed funds because this will increase the company's net profit margin.

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