Question: 21) Last year's return on equity was 30%. This year the ROE has decreased to 20% even though the firm's earnings equaled last year's earnings.

21) Last year's return on equity was 30%. This year the

21) Last year's return on equity was 30%. This year the ROE has decreased to 20% even though the firm's earnings equaled last year's earnings. The rm has no preferred stock. What caused the decrease? A) Equity decreased by 50% B) Equity decreased by 10% C) Equity increased by 50% D) Equity Increased by 10%

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