问题
单项选择题
If a company can convince its suppliers to offer better terms on their products leading to a higher profit margin, the return on equity (ROE) will most likely:()
A. decrease and the stock price will increase.
B. decrease and the stock price will decline.
C. increase and the stock price will increase
答案
参考答案：C
解析：
Better supplier terms lead to increased profitability. Better profit margins lead to an increase in ROE. This leads to an increase in the dividend growth rate. The difference between the cost of equity and the dividend growth rate will decline, causing the stock price to increase.