Since 2016, DS Tech's return on common stockholders' equity has been 20%. During that time. DS had no preferred stock and : shares of $5 par common stock issued and outstanding. In 2020, DS return increased to 25% as a result of action taken by the company in that year. Which of the following could have produced the increase? Assume static net income. O the issuance of preferred stock O an increase in retained earnings Ca purchase of treasury stock the addition of common stock dividends distributable

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Since 2016, DS Tech's return on common stockholders' equity has been 20%. During that time, DS had no preferred stock and 20,000
shares of $5 par common stock issued and outstanding. In 2020, DS' return increased to 25% as a result of action taken by the
company in that year. Which of the following could have produced the increase? Assume static net income.
O the issuance of preferred stock
an increase in retained earnings
a purchase of treasury stock
O the addition of common stock dividends distributable
Transcribed Image Text:Since 2016, DS Tech's return on common stockholders' equity has been 20%. During that time, DS had no preferred stock and 20,000 shares of $5 par common stock issued and outstanding. In 2020, DS' return increased to 25% as a result of action taken by the company in that year. Which of the following could have produced the increase? Assume static net income. O the issuance of preferred stock an increase in retained earnings a purchase of treasury stock O the addition of common stock dividends distributable
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