Question: From a shareholder's perspective is a higher Return on Equity always better? A.Yes because ultimately it's the return you get on the investment you made
From a shareholder's perspective is a higher Return on Equity always better?
A.Yes because ultimately it's the return you get on the investment you made that counts.
B.The higher the better.
C.No because shareholders care more about the size of net profits.
D.Yes because lenders like to see a high return on equity and will be willing to lend more as a result.
E. Yes because that is the goal of most boards of directors.
F.No because it could mean the balance sheet includes a high amount of debt which can increase bankruptey risk.
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