Question
 Which of the following causes of an increase in
return on equity is most likely a positive sign for a firm’s equity investors?Solution
When net income is increasing more than the book value of equity, return on equity (ROE) will increase at a faster rate. This is a positive sign for investors. When firm issues fresh debt, it comes under an obligation to pay interest expenses, and that are paid out of profits, this decreases the ROE and is not a positive sign for investors.
Statements: F ≥ G < H = I; J < I; K > L = F
Conclusions:
I. I > K
II. G < L
III. L ≥ G
Statement: C > S > F > B > L; I > B > T
Conclusion: I. I > L II. T < C
If the expressions, ′X < C ≤ N > E ′, ′N ≥ O′ and ′W ≥ C′ are true then which of the following combinations will be definitely true?
Statement: F < G < H ≥ J; F ≥ K > L
Conclusion:
I. H > L
II. H = L
In the question, relationship between some elements is shown in the statements (s). These statements are followed by two conclusions. Read the statemen...
Statements: A < B = C < D, A > E = F ≥ G ≥ H > I
Conclusions:
I. D > I
II. E = I
In the question, assuming the given statements to be true, find which of the conclusion (s) among given three conclusions is /are definitely true and ...
Statements:  M = R ≥ S , N = O > Q, Q > W = A < S
Conclusions :
I. N ≥ S
II. W > R
III. O ≤ S
ÂStatements:  W > O > E ≤ N > P; L ≥ U; P > Q = R > U
Conclusions:
I. Â N > U
II. Â P > U
III. Â P < L
IV....
Statements: B > C, D > E, C = F, A ≥ F, D = A
Conclusion:
I. B ≥ E
II. E > B
